Sample and test options
This topic explains how sampling is applied, how sample sizes are calculated, and what testing options are available based on item classification and Risk Score.
When sampling applies
Sampling doesn't apply to Significant Items or Unusual Items; they're tested at 100%. Sampling applies to 2 segments: items with a Risk Score greater than 0 (including any sub-segments) and items with a Risk Score equal to 0.
Sample Size calculation
Sample size is based on 3 factors:
- Risk of Material Misstatement (RoMM)
- Substantive Procedure Risk
- Population Balance
You can assess RoMM and Substantive Procedure Risk using Low, Moderate, or High. As the assessed risk level increases for either factor, the required sample size increases accordingly.
Guided Assurance integration
When you fully integrate Guided Assurance, the system streamlines the sampling setup process by automatically populating key fields:
- Assertions auto-populate from theCX-7.1 Risk Assessmentforms.
- The RoMM value auto-populates based on the inherent risk and control risk settings configured in CX-7.1.
note
You can still to override any auto-populated value.
Expected misstatement warnings
Audit Intelligence monitors the relationship between expected misstatement and tolerable misstatement. If the expected misstatement exceeds 1/3 of the tolerable misstatement, you'll get a warning message. This warning is informational only and doesn't prevent you from proceeding. However, we recommend you reconsider the sampling approach whenever this warning appears.
Testing options (extent of testing)
The available testing options depend on how an item has been classified. For Significant Items and Unusual Items, the only option is to test 100%.
You have the following options for items in the Risk Score greater than or equal to 0 segments:
- Test 100%
- Test a sample
- Substantive Analytical Procedures
- Rely on Other Substantive Procedures
- No Further Testing