What is the relationship between FSA and Sampling Worksheets?

The sample size worksheets from B.70 - X.70, are linked to the Inherent Risk and Control Risk ratings made in the FSA Worksheet.

Furthermore for an auditor this helps to begin the calculation for their sample size worksheet.

  1.  Required Level of Assurance:  The required level of assurance reflects the level of confidence required for sampling which is equated to 100% less the Audit Risk associated with the assertion. 
  2. Inherent Risk and Control Risk: Based on the Reliability Factor Table these inherent and control risk factors represent the quantitative level of risk from the risk assessment. The higher the level of inherent / control risk then the lower the risk factor deducted for sampling purpose. This will reflect from FSA
  3. Combined risk factor: The total of Inherent Risk and Control Risk factor. 
  4. Other substantive tests: Under the Reliance, the auditor needs to use their own professional judgement to determine the Other Substantive Tests, the risk factor for Other Substantive Tests is an input cell which an auditor can change the defaults anytime as they require. 
  5. Expected Misstatement Factor: Using the risk factor, this is calculated in relation with the performance materiality. 


Note: If an auditor needs to create a Sample Size worksheet which is not linked to the FSA Worksheet, they can use the SAMP - New Substantive Sample Sizes Worksheet workpaper which is found in the Audit System - Control > Master Documents folder. 




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