Audit Manual - Core Treasury System Uttarakhand

Government of Uttarakhand
Audit Manual
Test only those controls that have been evaluated as effectively designed. Use judgment to
select the most appropriate sample size, considering the following:
• Control frequency
• The type of evidence produced by the control
• The potential impact of the risk that the control is designed to mitigate
• Effectiveness of the entity level internal controls
Sampling methods
The auditor should select sample items in such a way that the sample can be expected to be
representative of the population. This requires that all items in the population have an
opportunity of being selected. There are numerous sampling techniques. However some of the
commonly used methods, which shall be appropriate for selecting sample, are:
• Random sampling (items chosen purely at random)
Random record sampling is a common means of sample extraction. Random Selection
ensures that all items in the population have an equal chance of selection.
• Block Checking Block
This type of Checking entails selection of all transactions within a specified period range. For
example, verifying all cash payment vouchers during the first two weeks of March.
• High value sampling
In this type of sampling high value items are selected. Extracting a list of high value
transactions carries the selection / balances sorted on ascending order (the largest value at
the beginning)
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