Audit Project Management Sampling Methodology PDF

Lesson 6 & 7: Audit Project Management Sampling Methodology “ AUDIT PROJECT MANAGEMENT 2 OVERVIEW Auditing project management involves evaluating the processes, practices, and controls used to manage a project effectively. The goal is to ensure the project is progressing as planned,...

Lesson 6 & 7: Audit Project Management Sampling Methodology “ AUDIT PROJECT MANAGEMENT 2 OVERVIEW Auditing project management involves evaluating the processes, practices, and controls used to manage a project effectively. The goal is to ensure the project is progressing as planned, within budget, and achieving its intended outcomes, while complying with relevant regulations and standards. 3 Key steps in auditing project management 1. Planning the Audit 2. Gathering Information 3. Evaluating Key Project Management Areas 4. Testing and Validation 5. Reporting 6. Follow-Up 4 Planning the Audit ▪ Define Scope and Objectives ▪ Develop an Audit Plan ▪ Risk Assessment 5 Gathering Information ▪ Project Documentation Review ▪ Interviews and Observations ▪ Data Collection 6 Evaluating Key Project Management Areas ▪ Scope Management ▪ Time Management ▪ Cost Management ▪ Risk Management ▪ Quality Management ▪ Resource Management ▪ Communication and Stakeholder Management ▪ 7 Procurement Management Testing and Validation ▪ Process Compliance ▪ Control Effectiveness ▪ Deliverables and Milestones 8 Reporting ▪ Preliminary Findings ▪ Final Audit Report ▪ Action Plans 9 Follow-Up ▪ Implementation of Recommendations ▪ Ongoing Monitoring 10 “ SAMPLING METHODOLOGY 11 SAMPLING METHODOLOGY TWO TYPES OF SAMPLES 1. Probability Sample ✓ Samples are obtained using some objective chance mechanism, thus involving randomization. ✓ The probabilities of selection are known. ✓ They are generally referred to as random samples. ✓ They allow drawing of valid generalizations about the universe/population. 12 SAMPLING METHODOLOGY TWO TYPES OF SAMPLES 2. Non - probability Sample ✓ Samples are obtained haphazardly, selected purposively or are taken as volunteers. ✓ The probabilities of selection are unknown. ✓ They should not be used for statistical inference. 13 SAMPLING METHODOLOGY SAMPLING PROCEDURE 1. Identify the population. 2. Determine if population is accessible. 3. Select a sampling method. 4. Choose a sample that is representative of the population. 5. Ask the question, can I generalize to the general population from the accessible population? 14 SAMPLING METHODOLOGY Basic Sampling Technique of Probability Sampling 1. Simple Random Sampling ✓ Most basic method of drawing a probability sample. ✓ Assigns equal probabilities of selection to each possible sample. ✓ Results to a simple random sample. 15 SAMPLING METHODOLOGY 1. Simple Random Sampling 16 SAMPLING METHODOLOGY Basic Sampling Technique of Probability Sampling 2. Systematic Random Sampling ✓ It is obtained by selecting every kth individual from the population. ✓ The first individual selected corresponds to a random number between 1 to k. 17 SAMPLING METHODOLOGY 2. Systematic Random Sampling 18 SAMPLING METHODOLOGY Basic Sampling Technique of Probability Sampling 3. Stratified Random Sampling ✓ It is obtained by separating the population into non- overlapping groups called strata and then obtaining a simple random sample from each stratum. ✓ The individuals within each stratum should be homogeneous (or similar) in some way. 19 SAMPLING METHODOLOGY 3. Stratified Random Sampling 20 SAMPLING METHODOLOGY Basic Sampling Technique of Probability Sampling 4. Cluster Sampling ✓ You take the sample from naturally occurring groups in your population. ✓ The clusters are constructed such that the sampling units are heterogeneous within the cluster and homogeneous among the clusters. 21 SAMPLING METHODOLOGY 4. Cluster Sampling 22 SAMPLING METHODOLOGY 4. Cluster Sampling 23 SAMPLING METHODOLOGY Basic Sampling Technique of Probability Sampling 5. Multi-Stage Sampling ✓ Selection of the sample is done in two or more steps or stages, with sampling units varying in each stage. ✓ The population is first divided into a number of first-stage sampling units from which a sample is drawn. Smaller units, called the secondary sampling units, comprising the selected first-stage units then serve as the sampling 24 units for the next stage. SAMPLING METHODOLOGY 5. Multi-Stage Sampling 25 SAMPLING METHODOLOGY Remember! Use probability sampling if the main objective of the sample survey is making inferences about the characteristics of the population under study. 26 SAMPLING METHODOLOGY Basic Sampling Technique of Non-Probability Sampling 1. Accidental Sampling - There is no system of selection but only those whom the researcher or interviewer meets by chance. 2. Quota Sampling - There is specified number of persons of certain types is included in the sample. The researcher is aware of categories within the population 27 and draws samples from each category. SAMPLING METHODOLOGY Basic Sampling Technique of Non-Probability Sampling 3. Convenience Sampling - It is a process of picking out people in the most convenient and fastest way to get reactions immediately. This method can be done by telephone interview to get the immediate reactions of a certain group of sample for a certain issue. 28 SAMPLING METHODOLOGY Basic Sampling Technique of Non-Probability Sampling 4. Purposive Sampling - It is based on certain criteria laid down by the researcher. People who satisfy the criteria are interviewed. It is used to determine the target population of those who will be taken for the study. 5. Judgement Sampling - selects sample in accordance with an expert’s judgment 29 SAMPLING METHODOLOGY Cases wherein Non-Probability Sampling is Useful ✓ Only few are willing to be interviewed ✓ Extreme difficulties in locating or identifying subjects ✓ Probability sampling is more expensive to implement ✓ Cannot enumerate the population elements. 30 SAMPLING METHODOLOGY Sources of Non-Sampling Error 1. Non-sampling Error ✓ Errors that result from the survey process. ✓ Any errors that cannot be attributed to the sample-to- sample variability. 31 SAMPLING METHODOLOGY Sources of Non-Sampling Error ✓ Non-responses ✓ Interviewer Error ✓ Misrepresented Answers ✓ Data entry errors ✓ Questionnaire Design ✓ Wording of Questions 32 ✓ Selection Bias “ Turn the rejections you receive into others' regrets. - JDG, CPA 33 34