An entity’s financial statements are the product of many transactions, events, account balances, and disclosures. It typically isn’t cost effective for an auditor to test each item and every such item in their entirety. Audit sampling allows an auditor to reach conclusions about an entire population of items—such as transactions, events, account balances, or disclosures—by testing a sample drawn from the population. This course provides a basic introduction to the guidance on planning, performing, and evaluating audit samples as set forth in generally accepted auditing standards (AU-C §530, Audit Sampling). Upon completing this course, you should be able to: Describe the role of audit sampling within an audit of financial statements; list the steps in planning, performing, and evaluating audit samples; define sampling risk and assess the types of errors it can cause; relate materiality to the design and evaluation of audit samples; distinguish a statistical sample from a nonstatistical sample; cite matters unique to tests of controls and tests of details; and recall how an auditor responds to deviations and misstatements.