This note would be an overview of sampling, starting with the definition of what sampling is, when and how it is used, moving through to discussion of the different types of sampling and the risks associated with them. The note will also discuss the steps involved in sampling and the role of sampling in auditing, including attribute sampling and variable sampling. Sampling consists of drawing an effective conclusion on a population of interest by testing the confidence acquired on a subset of this population, what is called the sample, at a lower cost in time and money than those of the testing of the entire population. However, the trade-off between efficiency and effectiveness still exists. In other words, sampling would be used when the efficiency gains exceed the efficiency loss. Because sampling only tests a small group of samples within the population, which can result in a loss of efficiency, sampling risk still exists. Sampling risk is defined as the probability that a difference will occur between the conclusion drawn from testing the sample and that from testing the entire population. For example, a company offers a snack with three flavors, A, B, and C, all targeting the teenage market. The company conducted sampling to decide which product to focus more on. By assigning 10 points to each participant and asking them to assign the points to the three tastes after trying, the researchers calculated the total credits earned by each taste. The conclusion of the test of 100 population participants shows that A got more credits, however, the real result is that C is the bestseller. The difference is called sampling error, which occurs when a sample is an unrepresentative group of the population. Therefore, in order to control...... middle of paper ......sampling, the population consists of all components or transactions in the account balance or transaction class. Auditors use sampling to increase efficiency while maintaining the appropriate level of effectiveness, but sampling risks can lead to different and unexpected results. From the module we can see how the results relate to each method and step used in sampling, and this is the reason why auditors need to know how to sample, what to do to control risks. In conclusion, this memo has given a good guide and explanation on what sampling is, when and how auditing is used both regularly and as part of auditing. It also indicated the risks inherent in sampling and methods to control these risks. The specific plans used in this process and how auditors use them in a client audit are detailed step by step..