SOX Testing sample size 1717

  • When performing testing on ‘Quarterly’ control. If one quarter is selected for testing. However, there are multiple items within the quarter. Would you review 100% of the items within that quarterly control or select samples for validation? If the latter, how do you decide the number of items for validation? %0AAny input would be much appreciated.

  • quarterly control samples are bases on reports etc that only occur once every quarter.
    If your documents and reports etc that are used as control activities are prepared more that once a quarter, then you may have to revise your documentation to determine if the control is a monthly/ daily/ or muliple times a day control activity.

  • Quarterly controls are performed once in a quarter, it maybe a report, a reconciliation or a review and sign-off.%0AThe crux is the number of time a control is performed in year. Therefore, sample selection depends on the expectations of your External auditor, it varies from 25% to 40%.%0ATherefore, sampling is definitely required if you have more than one occurrences, if an effective and efficient audit is expected.

  • Can you be more specific as to ‘multiple items within the quarter’?
    If each item is a different control, then each control must be tested for 2 quarters. If it refers to something like journal entries made on the quarter, you would select a sample of the entries to test for proper controls, not just one.
    More details would help us provide you with a more accurate response.

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