Form Gt-800059 - Sampling And Your Audit (Page 2 of 3) in pdf

Non-Statistical Sampling

When electronic transactions are not available or the electronic data is not suitable for an electronic

detail or stratified statistical sampling, non-statistical sampling techniques will be used. Non-statistical

sampling methods may use random selection of sample points, but do not calculate precision or

sampling risk.

In order to be a statistically valid sample, precision must be calculated. Because this is not generally

possible when we do not have electronic records, these samples are referred to as non-statistical

samples, even though random selection may have been used.

How Are Non-Statistical Sample Points Selected?

There are two non-statistical sample selection methods:

•

Random sample selection – Random selection uses a random number generator to determine

the sample points. This selection method removes any auditor or taxpayer bias from the

selection process. Based on how the records are physically stored and available this sampling

method provides for maximum efficiency and effectiveness. Records can be numbered or

non- numbered, or may be a combination of both. The auditor can randomly select both types

of records for review.

Possible examples include:

➢ Numbered

•

Invoice numbers

•

Voucher numbers

•

Check numbers

➢ Non-Numbered

•

Time periods (days, weeks, months, quarters)

•

Journal pages and line items

•

Imaged documents

•

Microfiche documents

•

Judgmental sample selection – Selection relies on the auditor’s judgment in the evaluation and

selection of a sample. Auditor judgment is based on auditing principles, common sense,

managerial guidelines, and audit experience to form reasonable conclusions. This selection

method may be most applicable when taxpayer’s records are inadequate or when random

selection is not feasible.

Frequently Asked Questions

What if my records are filed differently from year to year?

A representative sample can be selected from many different populations, based on how the records are

filed. Your auditor can assist you with determining an effective and efficient audit plan for your individual

records.

What software will be used to randomly select the sample points?

The Department has developed software programs that randomly select sample points from both

electronic and hard-copy populations. WinSample is the software supporting hard-copy samples. It is

available on our website.

Will my records be kept confidential?

Florida law specifically states that all tax information received by the Department is confidential and will

only be used for official purposes. Any current or former Department employee who makes or

participates in an unauthorized disclosure of confidential tax information is subject to criminal penalties

provided in section (s.) 213.053, Florida Statutes (F.S.).

Florida Department of Revenue, Sampling and Your Audit, Page 2

Form Gt-800059 - Sampling And Your Audit Page 2

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