Random number selection requires each item in the population to be individually numbered or be capable of being assigned a unique identifying number. Random number tables, or computer generated random numbers, are used to select the random numbers. Items in the population that correspond to the random numbers are then selected from the population. This will help ensure that every item in the population has an equal chance of being selected.
For example, assume the auditor determines a sample size for a particular population, or stratum, of retail inventory items, is 50 items. Assume also that every item has a unique four digit product code with the smallest number being 1001 and the largest being 5999. The auditor may then use random number tables to select the items by choosing 50 numbers between 1001 and 5999, ignoring any numbers outside that range, continuing until 50 different numbers have been chosen. Alternatively, the auditor may use a random number generator. The random numbers selected are used to identify the items of retail inventory to be selected for examination, by selecting 50 items of inventory with the same product code as the 50 random numbers chosen.
Audit testing procedures, index
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