Episode 05 addresses variable sampling, a statistical method used to estimate numerical values, such as account balances. That is, it involves substantive testing that is used to estimate the amount or value of a characteristic in the population.

Two common types are classical variable sampling and monetary unit sampling (MUS).

Classical variable sampling estimates the mean or total of a population, while MUS focuses on the dollar amounts, giving larger items a higher chance of selection.

For instance, an auditor testing accounts receivable might use MUS to sample customer balances, targeting higher-value accounts for accuracy. If errors are found, the auditor projects the misstatement to the population. Variable sampling enables auditors to assess the fairness of financial statements with statistical confidence.