Importance The article examines the technology of audit sampling, which is based on risk classification and methods of identifying risk elements at the level of groups of similar business transactions. Objectives The purpose is to develop an algorithm of audit sampling planning, which takes into account the relationship of procedure for understanding the entity's operations, results of materiality and risk assessment with procedure for elements selection and sample scope assessment. Methods The study rests on methods of analysis and synthesis, risk classification, selection of elements of sampling, formation of risk identification card. Results We offer a unique algorithm to plan audit sampling. Is rests on methods of risk identification and assessment at the level of single-type transactions by reasons of risk occurrence. The designed identification cards enable to assess the impact of inherent risk, risks associated with inaccurate and non-complete processing of data in the information system, inadequate functioning of controls, and to determine the degree of the influence of consequences on the accounting data. We offer recommendations to auditors on selecting the actions in response to assessed risk elements. Conclusions The risk-based approach to audit sampling enables to set areas of possible errors and irregularities, stratify sampled population, thus reducing the complexity of implementing the detailed audit procedures, identify significant risks, justify the sample scope and enhance the quality of audit opinion.
Keywords: audit sampling, group of transactions, risk elements, stratification, risk identification
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