Documenting the Plan and Its Results

Performance audit methodology requires auditors to document their audit plans and the results of their audit procedures. This requirement applies to sampling plans and their results. It is a good practice for the working papers to include enough detail to describe clearly the sampling objective and the sampling method used. It is suggested that enough information is provided to allow another audit team to replicate the method used and the results that were obtained.

The items that auditors could include in the documentation of their sampling tests are:

• a description of the test’s purpose (the question that needs to be answered)
• a definition of what constitutes a deviation, an error, or an exception condition
• a definition of the sampling unit and of the population, including the source of the data used and, when relevant, an assessment of the coverage error
• a description of steps taken to ensure that the population data was complete and reliable
• a description of how the population’s homogeneity was assessed and of what decisions were taken based on the results (e.g., defining several populations, using stratified sampling)
• when applicable, the desired confidence intervals and confidence levels, the tolerable deviation or exception rate, and the expected population deviation rate
• the chosen sample size and how it was determined
• the sampling approach used (generalizable or purposeful) and the sampling parameters
• in generalizable sampling, reasonable evidence that the sample was selected in an unbiased manner or attestations from two or more individuals regarding the steps taken for random selection
• confirmation that the results of relevant IT controls testing were considered before starting sample testing
• a list of the selected sample items
• a description of the examination procedures performed on the selected items
• the results of the examination procedures on the selected items, including, when relevant, a description of procedures conducted to assess any observed deviations
• a short statement of the overall conclusion in relation to the objective of the sample
• a description of how the sample results contributed to forming the audit’s conclusion (including, for generalizable samples, whether the results were extrapolated to the whole population)

It is suggested to keep this information in the audit files for each performance audit that relies on sampling to obtain audit evidence.

Of course, this is a lot of information, and it cannot all be included in the final audit report. The next section, Reporting the Results, explains what should be presented in the report.

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