What should the sample include in terms of risk?

The appropriate focus on policies and procedures related to the greatest areas of risk is essential for an effective audit process. This approach allows auditors to concentrate their efforts where the potential for significant issues is most pronounced. By doing so, auditors can better identify weaknesses or non-compliance that could lead to substantial organizational vulnerabilities.

Focusing on high-risk areas ensures that resources are allocated efficiently and that the audit is not only comprehensive but also targeted. For instance, in a financial institution, areas such as anti-money laundering (AML) or fraud detection might represent the highest risk and thus merit a closer examination of the relevant policies and procedures.

This targeted review directly addresses the core objectives of the audit, which are to gauge the effectiveness and compliance of specific controls where the greatest exposure exists, rather than spreading efforts too thin across all policies or relying solely on random selections. Such precision in sampling aligns well with a risk-based audit approach, ensuring that findings and recommendations are meaningful and impactful for the overall risk management framework of the organization.