Know More About The Audit Sampling Errors

Know More About The Audit Sampling Errors

The Audit sampling done for both small or huge business companies renders risk when the process meets errors knowingly or unknowingly. The types of errors include

  1. The tolerable error
  • This can be stated as the maximum error size occurring within the population for which the auditor is ready to accept. Further, the auditor may possibly conclude the auditing session by announcing that this process has greatly complied with the audit objective.
  • Usually, this type of error occurs during the initial planning stage or along with the functional procedures and is associated with the auditor’s verdict about the materiality status.
  • Thus, it can be stated that the less the amount of tolerable error, the higher the sampling size will need to be.
  • In accordance with the tests of control, the maximum deviation occurring from the specified control procedures account to tolerable error. Whereas for the normal procedures the auditor possesses an acceptable error level with which he is able to arrive at the audit objective with a reasonable assurance, that the accounts are not materially misstated.


  1. The expected type of error.
  • This is the type of sampling errors that the auditor confirms to be present within the population. Here a larger sample is taken for examination than the normal size to conclude the fact that the actual error residing in a population is really less than the expected tolerable error.
  • To evaluate the case of expected error residing in a population, the auditor should account for permissible error levels and evidence in the prior conducted audits and the changes made in the procedures due to this type of error.

How to select a sample for auditing?

The auditor selects samples as they actually represent the characteristics of a population. Moreover, any part of the population can be taken for evaluation.

The three basic selection methods include

  1. The random picking of samples.

This process predicts the fact that all portions of the population have equal chances of being selected for auditing.


  1. A systematic way of picking.

This includes a regular method of picking samples between constant intervals after the start. Further, the auditor must make sure that the population is not ordered in a manner similar to the trend residing within the population.


  1. The Haphazard type of selecting.

This is a technique alternative to the random choosing. For this, the auditor chooses any sampling sequence without recognizing the fact that there may be specified units present within the population.