In this guide · 7 sections
- A sample is not a shortcut for guessing. It is a defensible way to reach a conclusion about a population when the auditor has first defined the population, the purpose of the test and the risk being addressed.
- Plan, perform, evidence and conclude are four separate parts of a defensible audit step.
- A clear working-paper reference and reviewer conclusion matter as much as the checklist tick.
Try SignReady: Keep the procedure, evidence and conclusion in one review-ready audit file.
Start freeA sample is not a shortcut for guessing. It is a defensible way to reach a conclusion about a population when the auditor has first defined the population, the purpose of the test and the risk being addressed.
What the auditor needs to establish
Start with the audit objective and the assertion at risk. A good file lets a reviewer see the population or matter examined, why the procedure was selected, what evidence was obtained, exceptions found and the conclusion reached. The steps below are a practical framework; they must be tailored to the engagement, assessed risks and applicable reporting framework.
Use SignReady to keep the procedure, evidence, open query and partner conclusion together. Start with 3 finalisations free.
A practical procedure
- Define the population and the assertion: for example, all year-end receivables for existence, or all purchase invoices for cut-off.
- Decide what requires 100% testing: individually significant items, unusual items, and items with known risk should normally be selected separately.
- Set the remaining sample using professional judgement or a statistical method. Document the population size, selection method, sample size and why it responds to the risk.
- Test every selected item, record exceptions, project or evaluate them where appropriate, and reconsider the sample if results are worse than expected.
How to document the work
| Record | What it should show |
|---|---|
| Purpose and risk | The assertion, population or issue being addressed and why the work is necessary for this client. |
| Work performed | Who performed it, date, population/selection where relevant, documents inspected and tests completed. |
| Evidence and exceptions | Working-paper references, copies or links to evidence, exceptions and follow-up. |
| Conclusion and review | A clear conclusion against the objective, effect on the financial statements/report, reviewer comments and closure. |
In SignReady, use the relevant programme area to attach the evidence, raise exceptions as review points and record the conclusion before final partner sign-off. That is a workflow benefit—not a substitute for professional judgement or the underlying procedures.
Common mistakes
- Selecting only convenient vouchers or only items supplied by the client.
- Calling a selection “random” without showing the population and method.
- Leaving exceptions in the file without a conclusion on their effect.
Final review questions
- Does the work respond to the specific risk, rather than a generic checklist?
- Could another experienced auditor understand what was tested and why?
- Are all exceptions resolved, quantified or carried into the final evaluation?
- Does the conclusion link to the financial statements or reporting decision?
Try SignReady: Give your reviewer the workpaper reference, conclusion and open points in one place.
Start freeFrequently asked questions
Can I use this as a standard audit checklist?
Use it as a starting framework only. Tailor the objective, procedures, selection and conclusion to the entity, assessed risks and applicable standards.
What makes a working paper review-ready?
It identifies the objective, work performed, evidence, exceptions, conclusion, preparer and reviewer. A tick without that trail is rarely enough.
Can SignReady replace professional judgement?
No. SignReady organises work, evidence, review points and finalisation. The auditor remains responsible for the audit procedures, conclusions and report.
Sources
SignReady brings your trial balance, working papers, review points and finalisation checks into the same client file. Start free — 3 finalisations.
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Version history: 16 Nov 2026 — first published. This guide is part of SignReady's audit-procedures series. It links the audit objective, procedures, evidence and conclusion so the work can be reviewed properly.
