How should auditors select the sample of policies and procedures for review?

Selecting a sample of policies and procedures for review should be based on obtaining an accurate and relevant representation of the organization's practices related to the specific activities being audited. This approach ensures that the audit covers a range of policies and procedures that reflect the operational realities of the entity. It takes into account the diversity of the organization's functions, the context of its operations, and varying degrees of risk and compliance associated with different areas.

By focusing on a representative sample, auditors can identify systemic issues or weaknesses, understand the overall effectiveness of the policies in place, and make broader assessments about compliance and governance. This comprehensive understanding is vital for providing valuable insights and recommendations to improve the organization's practices.

Other approaches, such as only reviewing the most recently updated documents or focusing solely on high-risk areas, might miss critical aspects of the organization’s operational framework. Additionally, assessing all documents equally does not allow for prioritization based on relevance and potential impact, which is essential for efficient auditing. Thus, a sampling method that encompasses a representative mix is fundamental for a thorough and informative audit process.