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What is targeted audit sampling?

This is when the auditor targets certain account balances or customer balances to test. This is typically a good approach when the auditor can cover a large portion of the overall balance by targeting specific transactions or customer accounts.

For example, if a company had an accounts receivable balance of $197,000 at year-end, but 7 customers comprised $195,000 of the balance, the audit team would target the balances for those 7 customers. By targeted those 7 customers, the audit team will have 97% coverage!


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