Sampling in ISAE Attestation

Published: 24/01/2022

How do I perform sampling in ISAE Attestation?

Answer:

An auditor’s approach to sampling, as one of the ways in which evidence is gathered in an assurance engagement, should be based on a methodology or policy that is consistently applied in similar engagements. The firm’s leadership is ultimately responsible for formulating this methodology, and it should be available as a technical resource for all employees.

The objective of calculating a sample size is to provide the auditor with a reasonable basis to draw conclusions about the population from which the sample is selected.

The auditor must apply the respective standards, professional scepticism and professional judgment in determining and sufficiently documenting the nature, timing and extent of procedures to be performed. There are various methods of gathering evidence and selecting items for testing, such as 100% testing, testing material items or performing substantive analytical procedures etc. Sampling is one such available method of gathering evidence relating to objectives in respect of a population, and the use of sampling must be related to the auditor’s decision on the planned nature, timing and extent of testing.

Methods of determining sample sizes are not prescribed in the standard that applies to attestation engagements - ISAE3000(R) Assurance Engagements Other than Audits of Reviews of Historical Financial Information - or in the IRBA Guide for Registered Auditors: Engagements on Legal Practitioners’ Trust Accounts (Revised March 2020) (hereafter referred to as the "IRBA Guide"). However, auditors must apply their firm’s sampling methodology to obtain sufficient and appropriate evidence to meet the objectives of the engagement.

On applying the firm’s selected methodology to determining samples on an attestation engagement, the auditor must further consider the purpose of the procedure and the characteristics of a population from which a sample is to be drawn, in designing the sample. The sample must be designed to reduce sampling risk and to ensure that all items in the population have an equal chance of selection.

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