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An auditor has chosen initially to examine as a test one month of sales. I have discovered that within that the month chosen the that shipping charges were not taxed on various taxable sales. In calculating the error rate or percentage to apply to the population base to obtain an estimate of sales tax due for the audit period would the SAMPLE BASE be the gross sales of the test month chosen or the gross shipping charges for the test month chosen?

Estimated Taxes Sales & Use Tax Audits Sampling
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Brian Weaver, CPA, MBA
The sample base should be the gross sales of the test month. So exceptions would go in the numerator, and the gross sales of the test month would be the denominator. The error percentage would be applied to all of the months in the audit period.
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