Multi-Stage Sampling

Multi Stage Sampling

 After selecting a sample of primary units ,a

sample of secondary units is selected from each
selected primary units - Two-stage sampling
 In tern a sample of tertiary units is selected from
each selected secondary unit - Three-stage
sampling
 Higher order multistage design is also possible.
Application

 In W.B Internal audit , multi-stage sampling has been

used from planning to execution stages of audit. DG
(Training) ,NAAA will address this.
 In DT-audit and in CERA we have used multi-stage
sampling . PD(DT) will discuss on its application.
 In All India performance reviews : PMGSY ,SSA,
Consumer Awareness , Educational Development of
SC/ST , Industrial Dispute Act etc. we have use multi–
stage sampling :We may take up one or two.
Will you be able to convince others about the applicability of Statistical
sampling in audit ? Pl remember the following points.

 The sample results are objective and defensible as it is

free from any personal bias.
 The method provides a means of advance estimate of
sample size in an objective basis.
 The method provides an estimate of the sampling error.
 It is the most accurate method of drawing conclusion
about a large and complex population.
 It is cost effective.
 Statistical samples may be combined and evaluated , even
though accomplished by different auditors.
 Auditors will be able to give a “True and Fair “ view .
 Effectiveness of audit reports will increase.