Sunday, 14 February 2016

Sample selection



To understand how a population behaves / functions, men have used sample sizes. The sample sizes have played a key role in knowing / predicting the behavior of the population.

Here I wish to incorporate one portion of the article which appeared in IIA i.e. expanding the foundation by Craig Guillot. The writer has brought out importance of Information Technology in sample selection and how it has impacted the field of Internal Audit.

Still many believe even today that 10% /20%/ any other number will give a fair view of the entire population, especially in the field of audit. However, the changes in technology has helped in capturing a very high number of sample size and get a far more nearer / closer to the true nature of population.

For the sake of better understanding I will reproduce the section and I believe that Auditors / sample dependent men have to relook at the sample size they are picking:

“Günther Meggeneder, senior vice president of corporate internal audit and compliance at ista International GmbH in Essen, Germany, says technology has fundamentally changed the nature of information at auditors’ disposal. While auditors used to test “hand-picked samples” in the 1970s and 1980s, they can now evaluate entire populations of data. Internal auditors of the past conducted “theoretical” interviews, whereas today’s interviews are based on comprehensive analytics. “[Changes] have had a big impact on soft skills, but process knowledge and analytical thinking remains very important,” he says.”

I believe many, still rely on the hand-picked samples and try to understand the nature of the population. It is time to regroup and accept that that there is a need to change the perception.




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