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Penalty for Going to an Audit without a Sample Size

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Is there a penalty if an auditor goes to do an audit without having a sample size? If an auditor go to do an audit and they just randomly choose items to review once they get there, can they still get the same outcome as if they would if they were properly prepared and the client had the opportunity to review and pull any information they needed beforehand so that auditor could do their job thoroughly without having to figure out what to audit.

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The solution discusses if there is a penalty if an auditor goes to do an audit without a sample size.

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Is there a penalty if an auditor goes to do an audit without having a sample size?

Sampling refers to selecting a subset of a population and uses it to make inferences about the population as a whole. Sampling in auditing implies applying "auditing procedures to less than 100% of the items" in a class of transaction or account balance so as to be able to obtaining and evaluate evidence on these transactions and account balances and use these to form auditing conclusions concerning the class of transitions or the account balance making up the population (Arens, Elderand, and Beasley, 2003).

Sample selection is a very important element in any audit programme as it is used in substantive testing and also in compliance. if an auditor goes to an audit without having a sample size and decides choose samples judgmentally then judgmental sampling is only accepted as a way of audit sampling as long as the "auditor is satisfied that sample is not unrepresentative of the entire population" (Guy, Carmichael, and Whittington, 2001). The condition stated for judgmental sampling is mainly ...

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