## Selecting Items for Testing
When obtaining audit evidence, the auditor selects items using one of three approaches:
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### 1. Selecting All Items — 100% Examination
Appropriate when any of the following conditions apply:
| Condition | Rationale |
|---|---|
| Small population | Few items — 100% is practical |
| Items of large value | Each item is individually significant / material |
| Significant risks are involved | Cannot afford to miss a misstatement |
| Other means do not provide SAAE | Sampling would not give sufficient appropriate evidence |
| Repetitive nature of items | Automated checks make 100% examination cost-effective |
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### 2. Selecting Specific Items
- Auditor uses professional judgement to select particular items (e.g., all items above a threshold, unusual items, items prone to risk)
- Results cannot be projected to the entire population — it is targeted, not representative
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### 3. Audit Sampling (SA 530)
- Applied to large populations where 100% examination is impractical
- Uses statistical or non-statistical sampling
- Results from the sample are projected to draw conclusions about the entire population
- (Full treatment under SA 530)
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### Decision Framework
```
Is the population small / high-value / high-risk?
→ Yes → 100% Examination
→ No → Is targeted selection sufficient?
→ Yes → Specific Item Selection
→ No → Audit Sampling (SA 530)
```