FRC publishes thematic review of audit sampling

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Published: 24 November 2023

The Financial Reporting Council (FRC) has today published its thematic review of audit sampling. Audit sampling is a fundamental tool for auditors, allowing the auditor to draw conclusions about a population based on the sample selected.

The FRC reviewed the sampling methodologies of the largest audit firms to identify areas of good practice and to highlight any concerns that will drive improvements and support our monitoring of the firms’ systems of quality management.

The review will be particularly useful for the wider audit market as sampling has been an area of repeated Audit Quality Review (AQR) findings for smaller firms. It will also highlight the significance and impact of professional judgment throughout the sampling process.

The review found all audit firms should:

  • Ensure that they provide engagement teams with sufficient guidance and training to support their use of professional judgement in audit sampling; and
  • Update their methodologies and guidance to drive better documentation of key professional judgements in this area.

The review will also support Audit Committees in better understanding and evaluating the approach taken by audit teams.

Read the Thematic Review of Audit Sampling