Sampling can be statistical or non-statistical. Sample size is determined by materiality, the risk assessment and the expected level of error.
Thanks to data analytics tools, all transactions can be examined in some areas; this reduces the need for sampling and increases the accuracy of the audit.
Source: BDS 530
Related terms
Performance materialityAn amount set below overall materiality to reduce the probability that the aggregate of uncorrected and undetected misstatements exceeds overall materiality.Audit evidenceAny information and documents the auditor uses to reach the conclusions on which the opinion is based.Tests of controlsProcedures performed to evaluate whether an entity's internal controls operate effectively in preventing, or detecting and correcting, material misstatements.Adverse opinionThe opinion in which the auditor states that the financial statements are not presented fairly, where misstatements are both material and pervasive.Agreed-upon proceduresAn engagement in which the practitioner performs procedures agreed with the entity and, where relevant, a third party, and reports only the findings without providing assurance.Analytical proceduresThe evaluation of financial information through analysis of plausible relationships among financial and non-financial data.
Last updated: October 22, 2026 · This definition is for general information only.