Audit Sampling

Overview

Audit Sampling is the application of audit procedures to fewer than all items in a population so the auditor can form a conclusion about that population under a defined sampling approach. The control exists to obtain and document sufficient, appropriate evidence to evaluate activities or controls against defined criteria with an appropriate level of independence. It differs from selective testing because sampling requires a stated population, selection method, objective, and evaluation of sampling risk. It should be interpreted alongside Audit Program because the concepts can affect the same decision without representing the same control, event, or risk.

The workflow establishes objectives, scope, criteria, populations, risks, procedures, selection methods, responsibilities, and review requirements before testing. Auditors evaluate both design and operation, investigate exceptions, consider limitations, and avoid extending conclusions beyond the evidence and period examined. In this context, design should consider completeness of the population, expected and tolerable error, confidence, stratification, sample size, replacement rules, projection of exceptions, qualitative significance, and whether anomalies require expanded or full-population testing.

It should connect the term to External Audit where that relationship changes access, transaction treatment, investigation, communication, or recovery.

Workpapers should identify the source population, samples, procedures, evidence, preparer and reviewer, deviations, management explanations, judgments, findings, and connection between evidence and conclusion. Independence, access restrictions, retention, and changes after the test date should be documented.

Useful measures include plan completion, coverage of high-risk areas, exception rate, repeat findings, overdue remediation, evidence quality, review adjustments, scope limitations, and time from fieldwork to final report.

The relationship with Compliance Monitoring should be documented where it affects residual risk or control ownership.