Which sampling methods are commonly used in fraud testing?

Which sampling methods are commonly used in fraud testing?

• A. Only random sampling.
• B. Random sampling, systematic sampling, and judgmental sampling.
• C. Probability sampling and cluster sampling.
• D. Qualitative interviews and surveys.

Answer: (B)

In fraud testing, you want both a representative view of the population and the ability to focus on high-risk areas, so practitioners use a mix of sampling methods. Random sampling lets every item have an equal chance, producing results that generalize to the whole population. Systematic sampling uses a fixed interval to pick items, which is efficient and helps ensure coverage across time or sequence. Judgmental sampling relies on risk assessments and expert insight to select transactions or accounts that look especially risky, increasing the likelihood of uncovering fraud with limited resources. Combining these approaches gives you both an unbiased picture and targeted testing where fraud risk is highest. The first option is too narrow, focusing only on random selection and missing systematic coverage and risk-based targeting. The third option emphasizes probability methods in isolation and doesn’t explicitly include targeted, judgment-based selection. The fourth option lists data-collection methods rather than sampling strategies for choosing what to test.

In fraud testing, you want both a representative view of the population and the ability to focus on high-risk areas, so practitioners use a mix of sampling methods. Random sampling lets every item have an equal chance, producing results that generalize to the whole population. Systematic sampling uses a fixed interval to pick items, which is efficient and helps ensure coverage across time or sequence. Judgmental sampling relies on risk assessments and expert insight to select transactions or accounts that look especially risky, increasing the likelihood of uncovering fraud with limited resources. Combining these approaches gives you both an unbiased picture and targeted testing where fraud risk is highest.

The first option is too narrow, focusing only on random selection and missing systematic coverage and risk-based targeting. The third option emphasizes probability methods in isolation and doesn’t explicitly include targeted, judgment-based selection. The fourth option lists data-collection methods rather than sampling strategies for choosing what to test.