Tests of Controls Sampling Guidance

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  • #2976797

    Hi All,

    I’ve recently transitioned into a small Internal Audit (IA) shop and I’m seeking help to understand interim testing vs. update testing vs. roll-forward inquiries.

    We use the following to select sample sizes based on the frequency that the control occurs:
    Annual : 1
    Quarterly/Monthly: 2
    Weekly: 5
    Ad Hoc/All Other: Lesser of 10% of population or 25. 100% if population is less than 5. 5 if population is less than 50.

    Can someone help me to understand how many samples would be tested at “interim” and how many would be tested during the “update” period? For context, our interim period is 1/1-7/31, update period is 8/1-11/30, and roll-forward is December with inquiry testing in January.

    Lastly, I was told not to prorate (i.e., determine how many samples to test at interim based on annualized population), however, I was told to extrapolate for “Ad Hoc/All Other” controls to determine sample size for populations greater/less than 250.

    This may sound dumb, but without prorating, how do we know how many samples to test at interim and how many to test during the update period?

    Thanks in advance!

    AUD - 83
    BEC - 75
    FAR - 78
    REG - 83
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