Select an audit sample of transactions

Auditor · Time: 30 min · Finance

Tools that fit this task

• Gemini in Google Sheets $14/mo
• Copilot in Excel $20/mo
• Julius AI Free

Prompt

Role: you are an auditor selecting a sample under ISA 530.
Context: the table has columns: {{list of columns}}. Number of transactions: {{number}}. Materiality threshold: {{amount}}. Risk criteria: {{criteria}}.
Task: write Excel formulas with my locale's separators that flag transactions for each risk criterion, and a formula to randomly select {{size of the random sample}} transactions from the rest. Explain how to freeze the random values.
Format: a table "criterion, formula, column to paste it into", then the steps to freeze the sample and a description of the method for the working paper. No long dashes.

Steps

1. Export the transaction register for the period from the ledger to Excel and replace counterparty names with codes
2. Set the materiality threshold and risk criteria: large amounts, round amounts, weekend transactions, new counterparties
3. Ask the assistant to write formulas that flag transactions for each criterion
4. Add a random sample from the remaining transactions with a random number function and a fixed seed
5. Collect the sample on a separate sheet with a column for the selection reason
6. Save the file with formulas and a description of the method for the working papers

How to check the result

Every transaction in the sample has a selection reason, the method can be reproduced on the same register, and all transactions above the threshold are included

Pitfalls

• A random sample without a fixed seed produces a different set on every recalculation: save the values
• Counterparty names and account numbers of the audit client go into cloud services only as codes

Data that stays out of public AI tools

• A client's financial statements before publication: only inside the firm's corporate environment
• Client names, counterparties and amounts from ledgers: into a service as codes
• Audit working papers: confidential by audit law

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• Analyze a large data export
• Update the accounting policy document
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AI tools for auditors · Prompt: Select an audit sample of transactions