Sampling risk means the risk that the auditor’s conclusion based on a sample may be different from the conclusion if the entire population were subjected to the same audit procedure.  Sampling risk can lead to two types of erroneous conclusions: In the …

Non-sampling risk means the risk that the auditor reaches an erroneous conclusion for any reason not related to sampling risk. (Ref: Para . A1 …

Anomaly means a misstatement or deviation that is demonstrably not representative of misstatements or deviations in a population. …

Sampling unit means the individual items constituting a population. (Ref: Para . A2 ) …

Statistical sampling means an approach to sampling that has the following characteristics: A sampling approach that does not have characteristics (i) and (ii) is considered non-statistical sampling. Random selection of the sample items; and The use of …

Stratification means the process of dividing a population into sub-populations, each of which is a group of sampling units which have similar characteristics (often monetary …

Tolerable misstatement means a monetary amount set by the auditor in respect of which the auditor seeks to obtain an appropriate level of assurance that the monetary amount set by the auditor is not exceeded by the actual misstatement in the population. …

Tolerable rate of deviation means a rate of deviation from prescribed internal control procedures set by the auditor in respect of which the auditor seeks to obtain an appropriate level of assurance that the rate of deviation set by the auditor is not …

When designing an audit sample, the auditor shall consider the purpose of the audit procedure and the characteristics of the population from which the sample will be drawn. …

The auditor shall determine a sample size sufficient to reduce sampling risk to an acceptably low level. (Ref: Para. A10-A11) …