Sample Size Calculator for Technology
Pre-configured sampling guidance for technology audits. Covers SaaS revenue recognition testing, capitalised development cost sampling, and multi-element arrangement analysis with ISA 530 methodology.
Sampling Method
↳ ISA 530.A4: items selected proportional to monetary value. Standard for overstatement testing.
Confidence Level
Reflects the assessed risk of material misstatement. Higher confidence = larger sample.
Population & Materiality
Prior year misstatements or current estimate. 0 if none.
Enables finite population correction when sample > 10%.
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ISA 530.5: Audit sampling means applying audit procedures to less than 100% of items within a population so that all sampling units have a chance of selection.
ISA 530.A4: MUS uses monetary units as the sampling unit, giving each monetary unit an equal probability of selection.
ISA 530.A11: Sample size is affected by the tolerable misstatement, expected misstatement, and the required level of confidence.
Sampling Considerations for Technology
Technology company audits focus heavily on revenue recognition under IFRS 15, particularly for SaaS, licensing, and multi-element arrangements. The combination of subscription revenue, usage-based pricing, and bundled contracts creates complex populations for sampling. Additionally, capitalised development costs under IAS 38 require testing of both the capitalisation criteria and the amortisation calculations.
Sampling focus: Technology
Revenue sampling for technology companies must account for different revenue streams — subscription fees, licence sales, professional services, and usage-based charges may all be present in a single contract. MUS applied to the contract-level revenue population is effective, but the auditor must also sample within contracts to verify that the allocation of the transaction price to performance obligations is correct.
Key sampling considerations
Stratify the revenue population by revenue type (subscription, licence, services, usage) — each stream has different recognition timing and risks under IFRS 15.
Multi-element arrangements require separate testing of the standalone selling price allocation — sample contracts with multiple performance obligations to verify the allocation methodology.
Deferred revenue balances represent a key assertion — sample deferred revenue items to test both the completeness of deferral and the accuracy of subsequent recognition timing.
Capitalised development costs under IAS 38 should be sampled by project — test whether each project meets the six capitalisation criteria and whether time and cost allocations are supportable.
Share-based payment expenses involve employee-level calculations — sample award grants to verify vesting conditions, fair values, and expense recognition over the vesting period.