Dear auditors, please explain how you pick samples for substantative testing.

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It depends...

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The amount or actually making selections? Guessing you mean randomly? Firm established guidance will determine the sample size. That depends on the type of account and key items identified.

Random selections at EY are done with firm provided tools. We have an excel based program (sampling assistant) that is garbage. We also have a program (EY random) that allows inputs for sample size, ordering, replacements, etc. That's what most teams use in my office.

Some practices use the =rand formula. This is a bad choice as its difficult to document and cannot be reproduced.

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Sampling assistant is probably the closest program I've seen. It will take the raw data and give a new tab showing total population, tested amount %, etc. From that all you need to do is copy / paste the selections into the testing tab.

I say it's garbage because the macro is very finicky. You need to have the data in the first tab to utilize it, the population function breaks sometimes, and you can't select from multiple sources.

Make a selection macro that works and sell it friendo. My sampling days are behind me but I'm sure my staff would appreciate it.

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Let me ask this better..
1) how do you/your company leverage Excel in your sample selection process?
2) Does your company have any automation tools that help speed up the process ?

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Depending on population size (months, transactions for th audit scope), then depending how far back you can pull the data, how lazy I am that day when selecting samples, high monetary values, I like that name and not that one, random date generator, every n sample is selected, judgemental

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Thanks EY 1, that was helpful. I’m trying to see if there are any tools for sampling out there that can take you from a raw client file to a test ready work paper automatically .

That’s great info! I have a sampling macro so I want to get a feel for what’s out there to see if it’s worth investing more time in building for scale or if solutions already exist

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