Mar/Jun 2016 Q2(a) Quality Control

See in Chapter 8 re the evaluation of misstatements - a projected error is the auditor's best estimate of error in a population based on the extrapolation of errors in a sample. The stages in audit sampling are: Design the sample Select the sample Test the sample Evaluate the sample results So in answer to your question - this is in no way limited to inventory - it applies to any transaction type/balance that is subject to sampling.