What type of sampling can be applied to a focused audit?

For a focused audit, non-statistical or judgmental sampling is the most appropriate method because it allows the auditor to select specific items based on criteria relevant to the audit objectives. This type of sampling is tailored to the particular areas of concern and enables the auditor to focus on transactions that are more likely to contain errors or outliers, thereby enhancing the effectiveness of the audit.

Non-statistical sampling does not rely on statistical formulas and calculations, which provides flexibility in selecting samples based on the auditor’s professional judgment and knowledge of the specific clinical or billing practices being audited. This method is beneficial when the auditor has insight into where potential issues may lie and can strategically choose samples that yield the most significant insights regarding compliance or quality of care.

In contrast, random sampling involves the selection of items purely by chance and does not consider specific risk factors, which may not maximize the audit’s effectiveness in targeting the areas of greatest concern. This could lead to ineffective use of resources if areas with higher risk of error are not prioritized.