A very experienced auditor takes a new auditor, fresh out of State U, out to lunch and remarks:
"Statistical sampling is fine, but I believe the best audit techniques are based on nonstatistical samples and audit issues that are spotted through observation. This is something you only get through experience".
In two or more paragraphs, comment on the experienced auditors observations. Are they valid?
Why or why not?
Also, include whether you believe statistical methods are more favorable compared to nonstatistical samples. Why?