This module provides participants with a practical understanding of substantive sampling in governmental audits, beginning with a brief review of key sampling concepts before moving into considerations for designing effective and efficient substantive sampling procedures. Participants will explore how sampling methods can be applied to obtain sufficient and appropriate audit evidence while considering the specific risks and circumstances of a governmental audit engagement.

Through group learning activities, participants will identify situations in which substantive sampling methods are most appropriate and explore opportunities to leverage automated tools and techniques to improve the design and execution of sampling procedures. The course emphasizes the importance of applying professional judgment when determining appropriate sampling approaches and evaluating the results of testing.

Participants will work through examples of exceptions and projected misstatements identified through substantive sampling and consider how those results should influence audit conclusions and subsequent procedures. The module also addresses the importance of clearly documenting sampling decisions, evaluation of results, and the rationale supporting professional judgments made during the audit.

By connecting sampling concepts with practical application, this course helps government auditors develop a more thoughtful and efficient approach to designing substantive sampling procedures, using available technology, and evaluating the results within the context of a governmental audit.