What key information should be defined when describing sampling in an audit?

When discussing sampling in an audit, it is crucial to define the universe from which the sample is drawn. This refers to the complete set of data or items that are relevant to the audit's objectives. By clearly identifying the universe, auditors ensure that the sample accurately represents the entire population, which is essential for drawing valid conclusions and making informed decisions based on the analysis.

Understanding the universe helps in determining the appropriate sample size, the sampling method to be used, and aids in ensuring that the results are statistically valid. When the universe is well-defined, the sampling process can be structured to minimize bias and increase the reliability of the findings. This foundational aspect of auditing sampling cannot be overlooked, as it directly impacts the effectiveness and credibility of the audit outcomes.