i. It is difficult to extract samples especially if documents are not sequentially numbered.
ii. The need to follow a predetermined statistical report may reduce initiative and the need to apply judgment by the auditor.
iii. The result may be misunderstood if audit staff are not properly trained on use of the techniques.
iv. It may not be suitable for all applications. Probability theory works best for large populations and therefore cannot be applied for small populations.
v. It is expensive because extensive staff training is required and the use of information technology.
Wilfykil answered the question on April 11, 2019 at 14:05
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