During internal controls testing, auditors analyze a representative sample of transactions to make assertions about the entire population. If an unexpected number of exceptions (including errors and omissions) appear in a sample, more work may be needed. Sampling helps minimize audit costs and disruptions during testing. But it can backfire if the sample is too small or otherwise unrepresentative of the entire population of transactions. Contact us for more information on how sampling works and how you can facilitate the internal controls testing process.
