All 18 Audit Sampling questions
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When is 100% testing or specific-item selection used instead of sampling? How does reliance on internal controls affect substantive sample sizes? What is monetary unit sampling (MUS) and when is it used? How do you project (extrapolate) misstatements from a sample? What is attribute sampling versus variables sampling? What are the limitations and risks of relying on sampling?
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Auditing & Assurance › Audit Sampling

What do you do when a sample reveals a misstatement or deviation?

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Answer

Investigate the nature and cause of each exception (error vs fraud, isolated vs systematic). Consider whether it's an anomaly (rare, non-representative) which requires strong justification and extra work; otherwise project it. Reassess whether related risks and controls are affected, and extend procedures if the projected misstatement approaches or exceeds tolerable misstatement.
Real-world example A deviation traced to one new clerk's training gap is investigated to confirm it isn't systematic before concluding.

Common follow-ups: When can a misstatement be treated as an anomaly? | Why investigate the cause of exceptions?

Audit Risk & Materiality Fraud & Error Responsibilities Audit Sampling
All 18 Audit Sampling questions