Basic Audit Sampling Concepts
Basic Audit Sampling Concepts
SAMPLING
CONCEPTS
MEANS OF SELECTING ITEMS
FOR TESTING
Selecting all items (100% examination)
Selecting specific items
Audit sampling.
SELECTING ALL ITEMS (100%
EXAMINATION)
The auditor may decide that it will be most
appropriate to examine the entire population
of items that make up a class of transactions
or account balance (or a stratum within that
population).
SELECTING SPECIFIC ITEMS
The auditor may decide to select specific
items from a population based on such
factors as the auditor's understanding of the
entity, the assessed risk of material
misstatement, and the characteristics of the
population being tested.
SELECTING SPECIFIC ITEMS
Description
High value or key items The auditor may decide to select specific items within
a population because they are of high value, or exhibit
some other characteristic, for example items that are
suspicious, unusual, particularly risk-prone or that
have a history of error.
All items over a certain The auditor may decide to examine items whose
amount values exceed a certain amount so as to verify a large
proportion of the total amount of class of transactions
or account balance.