For purposes of the annual audit, is it acceptable for the IPA to select cases for testing from the population of cases subject to grantees self-inspection procedures?
No. For purposes of the A-133 audit, the sample should be selected from the entire population of cases as defined in the December 1998 Compliance Supplement (Part C). Selecting a sample from a population of only cases that were previously subject to a self-inspection, or passed the self-inspection process would result in a biased sample and could not provide a reasonable basis for an opinion. AU350.24 and .34, which provides further guidance to auditors on sample selection states, in relevant part: “Samples should be selected in such a way that the sample can be expected to be representative of the population. Therefore, all items should have an opportunity to be selected… .” Case sampling is discussed in Audit Bulletin 2001-01 (February 4, 2000) and Audit Bulletin 2005-01 (December 2004).
