 In this presentation, we will take a look at non-statistical sampling for tests of controls Recalling that in prior presentations, we noted we can't use statistical First a word from our sponsor Well, actually these are just items that we picked from the YouTube shopping affiliate program But that's actually good for you because these aren't things that were just given to us from some large Corporation which we don't even use in exchange for us selling them to you These are things that we actually researched purchase and use ourselves Here we have a Western digital WD elements 20 terabyte USB 3.0 desktop External hard drive we use as part of our backup system Noting that if you lower the number of terabytes of storage the price will lower dramatically as well When you're thinking about a backup system You usually think about an online system or an external hard drive system like this or ideally some Combination between the two given you some redundancy You can also work directly from an external hard drive like this But there are some drawbacks to doing that one being if you use this as your primary drive You're working from it's no longer a backup drive and you're gonna need a backup system possibly another external hard drive and or some kind of cloud backup system and If you're working on something that takes up a lot of short-term memory a lot of RAM as you're working on it such as Video editing the external hard drive can slow up the system So you might want to come up with some kind of system where you download the project You're working on to your computer to your C drive or possibly to a solid state drive Which is a much more expensive? External hard drive as you do the work once the work is done then save the project to an External hard drive such as this If you would like a commercial free experience consider subscribing to our website at accounting Instruction comm or accounting instruction dot think of it comm where we have many different courses You can purchase one at a time or have a subscription model given you access to all the courses Courses which are well organized have other resources like Excel files and PDF files to download and no commercials or non-statistical sampling methods and then we went through some of the methods for statistical sampling a more formalized method that will be using statistics for the Testing of controls Non-statistical sampling not using some of those statistical methods having pros and cons however Including possibly being able to go through some set formats as opposed to the mathematical statistical samples for each item Which could be a little bit easier to do some of the cons might be that we end up with basically So a larger sample size is possibly given these conventions might be airing on The larger size of things so we could end up doing more testing but spending less time on some of the rigors of the statistics For the statistical sampling so here Non-statistical sampling decide on the sample size That's the first thing we're going to do decide the sample size when we're applying the non statistical sampling same kind of theory We have here. We've got a sample our example is that we have some purchase documents We're trying to see if they are in compliance with the control of saying a verification process Which we're going to see if there's initials on the documentation that would relate to that particular control So if that is then the case, we're going to decide what's going to be the sample size the entire population would be All of those purchasing documents We want to then decide what will the sample size be how many of them do we need to test? Auditing firm may have a non statistical sampling policy giving general guidelines as to the sample size So we might have this and basically a checklist or some kind of non Statistical policy that we might have they could actually be easier for us to use so that for example if control reliance is low The firm may choose 15 that might be the basically the policy if if moderate the sample size might be 25 And if high the sample size might be 50 So we might have basically a set of rules that we're going to basically have and apply To consider what the full sample size with me We might just basically have basically a grid that would show us sample size The total population and then give us basically the sample size that we would take from that in our non statistical type of sampling method A benefit of this kind of non statistical sampling is that it promotes consistency in sampling applications So this actually has a benefit and that although it's not statistical We're not doing a statistical calculation and and being as precise in terms of the statistical calculation It will be more consistent in that we're just basically going to take this conventional rule Look at the chart and basically apply the sample sizes in accordance with those sis The set of rules that haven't been set up sample items selection So now that we're thinking about now that we have the sample size How do we select those items in our case the purchasing documents? How do we go in and pick which ones we're going to be using within our testing? Non statistical sampling allows the use of random or systematic selection So we can't apply it in the thing that we would most think about the random basically selection However, it also permits the use of other methods such as half hazard sampling when half hazard sampling selection is used Sampling units are selected without any bias in other words without a special reason For including or emitting items from the sample upper deviation rate Calculation with a non statistical sample the auditor can calculate the sample deviation rate However, they cannot mathematically quantify the upper deviation rate computed and sampling risk associated with the tests