What is Discovery Sampling?

Discovery sampling involves the use of a sample to determine whether a percentage error does not exceed a designated percentage of the population. If the sample does not contain errors, then the actual error rate is assumed to be lower than the minimum unacceptable rate. The main variables used in the sampling calculation include the confidence level, minimum unacceptable error rate, and population size.

When to Use Discovery Sampling

Discovery sampling is applied when you expect the rate of occurrence for a particular data characteristic or attribute to be quite low. This sampling approach is intended to find out whether at least one occurrence of the characteristic or attribute in question exists in the underlying population. An auditor could employ discovery sampling to determine whether a particular transaction error or instance of fraud exists in the data set being examined.