NAA2332. Stress Free Sampling Part 1

A frequent area of concern in peer reviews and inspections, sampling need not be a source of stress. Often that stress has roots in several factors: the role of sampling in account and assertion based audit strategies, the “black box” sample size calculator in some methodologies, and the related documentation that will support the audit. This session will dissect the issues and present practical solutions. PART ONE will review common reasons for sampling stress and how sampling relates to audit strategy and efficiency. Exposing myths and incorrect thinking will reduce stresses associated with sampling. PART TWO will illustrate various ways to determine and document supportable sample sizes for controls and for substantive testing. We will note the contents and guidance in the AICPA Guide _Audit Sampling_ and identify common errors in sampling that often lead to peer review / inspection comments.

Learning Objectives:

• Identify the stress inducing aspects of sampling
• Apply simple approaches to stress reduction
• Analyze common peer review and inspection deficiencies and solutions