What determines the proper incident selections and number of sample items in an audit?

The choice of specific attributes or risks as the determining factor for proper incident selections and the number of sample items in an audit is essential because it focuses the audit on areas that present the greatest potential for issues or misstatements. By identifying and emphasizing particular attributes or risks associated with the audit's objectives, auditors can tailor their sample selections to provide a more accurate representation of the population and enhance the effectiveness of the audit.

This approach allows auditors to concentrate their efforts on high-risk areas that are more likely to yield significant findings, ensuring that resources are allocated efficiently. Additionally, it promotes a risk-based audit methodology, which is vital for identifying and assessing potential weaknesses in internal controls and compliance with applicable regulations. This ensures that the audit provides valuable insights and actionable recommendations for improvement.

Other factors, such as random selection methods, industry standards, and the size of the audit team, while important in their own right, do not focus specifically on the risks or attributes relevant to the audit's objectives and could lead to a less targeted audit process.