Generate a sample from Analytics Hub

A sample calculator is embedded in the Test Parameters tab of each analytic test in the Analytics Hub tab. This allows users to generate Random, Systematic or Monetary Unit samples for each analytic test. Sampling can be performed either as part of an analytic test or as a standalone calculator or filter for specific parameters.

Sampling involves selecting a subset of data from a larger population to draw conclusions about the entire dataset. Your client's transactions become the population from which you can generate a sample.

Sampling methods

The following sampling methods have been added.

Random sampling

Random sampling selects a randomly chosen subset of records from a dataset. This approach is useful for unbiased testing or validation processes, ensuring each record has an equal probability of being included in the sample. It can be applied to both the general ledger and subledgers.

Systematic sampling

Systematic sampling selects records at regular intervals based on a predefined frequency (for example, every 10th record). This method ensures an evenly distributed sample across the dataset and can uncover patterns or anomalies within a dataset. It is particularly effective for structured financial reviews and can be applied to both the general ledger and subledgers for identifying irregularities in transaction posting or trends in financial data.

Monetary unit sampling

Monetary unit sampling (MUS) selects records based on the monetary value of a specified column. Each monetary unit (for example, each dollar) is treated as a sampling unit, giving larger transactions a higher probability of selection compared to smaller ones. The sample size is determined by parameters, such as risk tolerances and confidence levels. This method is especially useful in financial auditing, as it focuses on transactions with greater monetary impact. MUS is applicable to both the general ledger and subledgers, offering a reliable way to prioritize high-value transactions for review.

To generate a sample from analytic test results:

1. Open the Analytics Hub. This can be done in two ways:

• Click the Analytics icon () from the Documents page, next to any checklist procedure where an analytic test is available. The Analytics tab will open providing a list of tests available for that checklist item.

• Select Analytics Hub at the top of the screen to display all checklist procedures that are available for an analytic test. Data must already be imported, or no data will be displayed.

2. Select the desired test from the left-side of the screen. The test results will populate in the right-side of the screen.

3. Select the Test parameters tab on the right-side of the screen and scroll down to Sampling.

4. Select a Sampling method to apply to the selected analytic test results.

• Random Sampling

• Systematic Sampling

• Monetary Unit Sampling

Note: You can adjust the parameters of the underlying analytic test to affect the results of the sample.

To generate a monetary unit sample from an analytic test:

The sample calculator for Monetary Unit Sampling includes specific calculator elements.

1. Follow the steps mentioned above and select Monetary Unit Sampling as your Sampling method.

2. On the right-side of the screen, select Amount from the dropdown field, Select monetary field to calculate sampling interval.

3. Adjust your parameters as needed and click Calculate.

   The following is a breakdown of the calculator elements:

• Population size – The total monetary value of the population being sampled.

• Confidence level – The desired level of assurance that the population is not misstated beyond the tolerable misstatement, typically expressed as a percentage.

• Tolerable error – The maximum amount of error or misstatement the auditor is willing to accept in the population and still consider the financial statements to be fairly represented.

• Expected error – The auditor’s best estimate of the total misstatement in the population before testing.

Note: you can adjust the underlying parameters of the analytic test and recalculate the population size.

4. The Sampling interval and Sampling size will generate in the fields below this button based on the selected analytic test results.

To generate a standalone sample from Analytics Hub:

You can generate a standalone sample from Analytics Hub that is not based on an underlying analytic test. A random, systematic or monetary unit sampling test can be selected from the left-side of Analytics Hub enabling you to generate a sample based on the population of the entire dataset or a customized filter.

Example of the standalone Monetary Unit Sampling

 

Export a sample

After you generate a data sample, you can export the sample to a CSV file or copy it to clipboard by using the Export icon [] on the right-side of the analytic test in Analytics Hub.