Introduction to Sampling Methodology
This part of the Practice Guide is structured according to the five main steps that audit teams should follow once they have decided to use sampling as part of their performance audit’s evidence collection strategy.
These five steps are:
Step 1. Analyzing the Population
Once a population has been identified and accurate and complete data has been obtained from the auditee on this population, the audit team needs to analyze this data to determine the population’s level of homogeneity.
Step 2. Selecting a Sampling Approach
This step requires audit teams to specify the objective of their sampling and to select a sampling approach (generalizable sampling or purposeful sampling) that will align with their objective.
Step 3. Preparing a Sampling Plan
This step involves making several important decisions, such as determining the sample size and selecting a sample method (i.e., how the sample will be drawn from the population).
Step 4. Executing the Plan
This is when the team puts the plan into action and revises the plan as circumstances warrant.
Step 5. Reporting the Results
The final step in the sampling process involves explaining and documenting the sampling methodology, reporting the findings derived from the sample, and stating whether the analysis is subject to any limitations (e.g., whether the findings from the sample can be extrapolated to the entire population).
This part of the Practice Guide follows these steps in order and covers both generalizable and purposeful sampling. In practice, they can be implemented sequentially, iteratively, or simultaneously.
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