#1978 · Legal & Compliance Tool

Contract Review Audit Sample Size Calculator

Estimate a defensible planning sample size for contract review work. Adjust the operational and scenario assumptions to see a transparent main result, supporting metrics, and practical interpretation. This independent planning tool does not determine legal obligations or replace advice from qualified counsel.

Calculator

Population and assurance
items
Total eligible records or transactions.
%
Statistical confidence for the estimate.
%
Maximum desired sampling error.
%
Use 50% when no prior estimate exists.
%
Expected share of selected items that cannot be tested.

How to use this calculator

  1. Enter the workload or financial assumptions for your scenario.
  2. Use values supported by current records, policy, or qualified advice.
  3. Select Calculate and review the main result plus supporting metrics.
  4. Change one assumption at a time to compare scenarios and document the basis used.

Formula

n₀ = z²p(1−p) ÷ e²; finite-population n = n₀ ÷ [1 + (n₀−1)/N]; draw size = usable n ÷ (1−unusable rate), rounded up.

What the result means

The usable sample is the estimated number of completed tests needed for the selected precision assumptions; the draw size adds an allowance for unavailable or unusable items.

This calculator estimates a random-sample size for a proportion. It does not replace a regulator-mandated method, stratification, discovery protocol, or professional sampling judgment.

Example calculation

For 10,000 items, 95% confidence, 5% margin of error, 50% expected exceptions, and 10% unusable items, the usable sample is 370 and the initial draw is 412 items.

Tips for better results

  • Keep a dated source for every legal and operational assumption.
  • Run low, expected, and high scenarios instead of relying on one forecast.
  • Separate legal requirements from internal risk tolerances.
  • Recalculate after scope, volume, staffing, or governing rules change.
  • Have qualified personnel review material decisions.

Frequently asked questions

Why use 50% as the expected contract review exception rate?

A 50% proportion produces the most conservative sample size when the true rate is unknown.

Does a larger population always require a much larger sample?

No. After populations become large, precision and confidence influence sample size more than population growth.

What does the unusable sample allowance cover?

It covers selected items that are missing, inaccessible, duplicated, or otherwise unsuitable for testing.

Can this sample size be used for a nonrandom sample?

The formula assumes random selection; judgmental or targeted samples need a different interpretation.

Does this calculator satisfy a court or regulator sampling rule?

Not necessarily. Follow any mandated protocol and obtain qualified legal or statistical advice.

Inputs used in this estimate

InputRole in the estimate
Population sizeUser-entered scenario assumption
Confidence levelUser-entered scenario assumption
Margin of errorUser-entered scenario assumption
Expected exception rateUser-entered scenario assumption
Unusable sample allowanceUser-entered scenario assumption

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