SA 530 — Audit Sampling

Issued by ICAI AASB · Audit Evidence

Statistical and non-statistical sampling — selection, evaluation, projection of misstatements.

Objective

To provide a reasonable basis for the auditor to draw conclusions about the population from which the sample is selected.

Key requirements

Sample design considering audit objective, characteristics of population
Sample size sufficient to reduce sampling risk to an acceptably low level
Selection of items in a way that each sampling unit in the population has a chance of selection
Performance of audit procedures on each selected item
Projection of misstatements found in the sample to the population
Evaluation of sampling risk in forming the conclusion

Typical procedures

Monetary Unit Sampling (MUS) for balance-sheet substantive testing
Attribute sampling for tests of controls
Variable sampling for substantive procedures

Common pitfalls

Sample size determined by partner's gut feel rather than risk-based math
Misstatements found but not projected to the population
Tolerable misstatement not linked to performance materiality

On CORAA

Sample size = ceil((CF × Pop) / PM). Formula shown and seed printed per working paper for reproducibility — the SA 530 file an experienced reviewer can defend. Open the matching module →

SA 530 in practice

SA 530 sits in the Audit Evidence phase of the audit. The Standards on Auditing are issued by the ICAI Auditing and Assurance Standards Board (AASB) and deemed to be prescribed by the Central Government under Section 143(10) of the Companies Act 2013. Compliance with SAs is mandatory for every audit conducted by a Chartered Accountant in India.

For authoritative text, refer to the ICAI AASB Compendium of Standards on Auditing at icai.org.

← Previous

SA 510 — Initial Audit Engagements — Opening Balances

Next →

SA 540 — Auditing Accounting Estimates (Revised)