Audit Sampling Plan

1. Objective of the test

• All purchase order should be signed by the management
2. Control Objective
• To ensure that all purchase are properly authorized
3. Define the population
• The population would be the purchase order for the year ended 2020
• There are 4617 sampling unit
4. Deviation
• The deviation would be the purchase order that does not have management’s signature
5. Desired level of Assurance, tolerable Rate, and Expected deviation
• The desired level of Assurance is 95%
• The Tolerable rate is 5%
• The Expected deviation is 2.5%
6. Sample Size
• The auditor decides to examine 40 out of the total 4617 purchase order accounts in order
to draw conclusion whether the total purchase order has management signature.
7. Sample Selection Method
• The auditor used a computer software, excel in particular, to produce random numbers
that match with the purchase order numbering system.
8. List of Selected Sample Item
• 13498 • 11838
• 13157 • 12617
• 11484 • 11323
• 11962 • 11059
• 11592 • 10717
• 14444 • 13096
• 11205 • 14745
• 13418 • 12410
• 14782 • 12247
• 12434 • 11313
• 14181 • 10543
• 10626 • 12666
• 10856 • 13553
• 14204 • 12295
• 11809
• 13754
• 10767
9. Sampling Procedure
• The auditor will have to review the purchase order to determine if the management
signature is on it. the signature will indicate that the manager has approved the purchase
and that the purchase is consistent with the organizat5ion’s mission.
10. Evaluate the sample result
• Sample deviation
 5/40= .125
• Compare Sample Deviation rate to Tolerable Deviation rate
1.25% < 5%
Since Tolerable deviation rate id larger than sample deviation rate, the auditor will
consider an allowance for sampling risk
• 2% allowance for sampling rsik
1.25% + 2% = 3.25%
3.25<5%
Since Tolerable deviation is larger, it is assumed that the sample result supported the
planned degree of reliance on internal control.