Topic 10: Audit Sampling

Topic 10: Audit Sampling

1. Sampling

   • Based on audit procedures: nature, timing, extent
     • FOCUS = EXTENT
   • Definition
     • application of audit procedures less than 100%
     • sampling units have a chance of selection
     • in order to provide the auditor with a reasonable basis on which to draw conclusions about the entire population.
   • Auditor Objective
     • provide a reasonable basis for the auditor to draw conclusions
       • about the population from which the sample is selected.
   • Types
     • 100% examination/specific items
     • statistical/non-statistical
       • statistical
         • Random selection
         • use of probability theory

2. Sampling & Risk

   • Sampling Risk
     • risk that conclusion based on the sample is different from the population
       • using the same audit procedure