Get Audit Sampling - Aicpa

Sampling can be used for both tests of controls and direct tests of account balances and assertions. *Audit procedures such as inquiry, observation, and analytical procedures are the primary audit procedures involving audit sampling.

The Audit Guide states that when inherent risk is lower, auditors should use a sample size of 25 items. The Audit Guide states that when inherent risk is higher, auditors should use a sample size of 40 items. KPMG auditors stated that they chose to use the higher sample size of 40 items for all the tests.

“quick and dirty,” audit designed to give you a sense of whether a more sophis- ticated audit is warranted, you may find it useful to sample a minimum of 20 charts. For better results, a common rule of thumb is to try for 10 percent of the eligible charts.

A good maximum sample size is usually around 10% of the population, as long as this does not exceed 1000. For example, in a population of 5000, 10% would be 500. In a population of 200,000, 10% would be 20,000.

01 Audit sampling is the application of an audit procedure to less than 100 percent of the items within an account balance or class of transactions for the purpose of evaluating some characteristic of the balance or class.

The steps involved in monetary unit sampling are to: determine a sample size. select the sample. perform the audit procedures. evaluate the results and arriving at a conclusion about the population.

For populations between 52 and 250 items, a rule of thumb some auditors follow is to test a sample size of approximately 10 percent of the population, but the size is subject to professional judgment, which would include specific engagement risk assessment considerations.

A sample size of between 50 and 100 should ensure that the results are sufficiently reliable for the majority of purposes, although there will be occasions when a sample as small as 30 may be sufficient.