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Glossary

Sampling

Selecting a subset of records for testing, from which conclusions are drawn about the whole population.

In full

Auditors test a sample rather than every record. Where errors are found in a sample, the conclusion may be extrapolated across the population, which is how a small number of errors can produce a large adjustment.

This is why consistency matters more than perfection on any single record: a systematic error found in a sample is assumed to be systematic everywhere.

Where this comes up