THE INSTITUTE OF CHARTERED

ACCOUNTANTS OF INDIA

PRESENTATION ON
TOPIC-

SA 530
AUDIT SAMPLING
By- Group 7
Divya,Ritika,Gautam,Taha,swati
 MEANING
Audit Sampling refers to the application of
audit procedures to less than 100% of items within a
population relevant under the audit, such that all
sampling units (i.e. all the items in the population)
have a equal chance of selection

Population refers to the entire set of data

from which a sample is selected and about which
the auditor wishes to draw conclusions
 Need For Sampling?
Audit sampling enables auditors to make
conclusions and Express fair opinions based
on predetermined objectives without having
to check all of the items within financial
statements.
 SCOPE AND OBJECTIVES
SCOPE
SA 530 Becomes applicable when the auditor has decided
to use audit sampling in performing audit Procedures .
This standards deals with the auditor’s uses of –
• Statistical and
• Non- statistical sampling
when designing and selecting the –
 Audit sample
 Performing tests of controls, and
 Evaluating the results from the sample.

OBJECTIVE
To get reasonable basis for conclusion about the population
from which sample is collected
ADVANTAGES AND DISADVANTAGES

advantages
• Low cost of sampling
• Less time consuming in sampling
• Scope of sampling is high
• Accuracy of data is high

disadvantages
• chances of bias
• Difficulties in selecting a truly representative sample
• Inadequate knowledge in the subject
• Impossibility of sampling
APPROACHES OF SAMPLING

It involves random selection of sample units and

use of probability theory to evaluate sample
result.
STATISTICAL SAMPLING It is more scientific Because it involves use of
Mathematical Laws of Probability

The sample size is determined on the basis of

personal experience and knowledge of auditor.

NON STATISTICAL This method is more simple to operate but

SAMPLING sometime sample may not be true due to
personal bias.
This approach is useful to eliminate trend and
give element of surprise
 SAMPLE SELECTION
METHODS
All items of population have
Random Sampling
known chances of selection

Systematic In this method the number of

Sampling sampling units in the poplulation
divided by sample size

This method involves selection of

blocks with in the population.
Block Sampling
 This method assess the amount
Monetary Unit of monetory misstatement
Sampling that may exist in an account
balance.

In this method the auditor detects the

sample without following a structured
Haphazard Sampling technique.
This method is not appropriate in statistical
sampling
PROCESS OF SAMPLING
1.Identify the population.
2.Specify a sampling frame.
3.Specify a sampling method.
4.Determine the sample size.
5.Implement the plan.
 Performing Audit Procedures
The auditor shall perform audit procedures, appropriate to
the purpose, on each item selected.
If the auditor is unable to apply the designed audit
procedures, or suitable alternative procedures, to a selected
item, the auditor shall treat that item as a deviation

Nature and Cause of Deviations

and Misstatement

The auditor shall investigate the nature and cause of any deviations or
misstatements identified, and evaluate their possible effect
on the purpose of the audit procedure and on other areas of the audit
 Projecting Misstatements

The auditor shall investigate the nature and cause of any deviations or
misstatements identified, and evaluate their possible effect on the
purpose of the audit procedure and on other areas of the audit

Evaluating Results of Audit

Sampling
The Auditor shall evaluate
 The Results of the sample
 Whether the use of the Audit Sampling has provided Reasonable
basis for conclusions about the population that has been tested.
AMPLING AND NON-SAMPLING RIS

NON-SAPMLING
SAMPLING RISK
RISK

SOURCES
• Human Mistakes
• Misinterpreting the
sample results
OVER UNDER • Applying audit
procedures not
RELIANCE RELIANCE appropriate to the
objectives
THANK YOU