Beruflich Dokumente
Kultur Dokumente
- Draws every nth item in the population for inclusion in the sample with a random starting point
- Population / Sample size = interval (round down)
Stratified Sampling
- Divides the entire population into different subgroups for a greater homogeneity
- Reduces variability
- Each group is sampled separately
- Sampling 100% of the items in a group with the highest values will yield greater confidence.
Sample Size
- Materiality
o More audit testing for accounts that materially or significantly affect the financial
statement
- Quality of Internal Control
o Weaker the internal control, the greater the sample size needed
- Relative Risk
o Susceptibility of an account to error or irregularities
- Evaluate sample results to determine whether the preliminary assessment of the relevant
characteristics of the population is confirmed or needs to be revised
- Analyze any error detected in the sample
- Projects the error found in the sample to the population
- Assesses the sampling risk
- Consider the direct effect of identified errors on the financial statements
- Consider the effectiveness of the accounting and internal controls
o When the errors result from management override of an internal control
- Errors discovered to have common features
o Extend audit procedures to other items in the population that also possess the common
features
- Anomalous Error
o Error arose from an isolated event that has not recurred other than on specifically
identifiable occasions
o Not representative of similar errors in the population.
o Performs additional work to obtain sufficient evidence that anomalous errors do not
affect the remaining part of the population
- Unexpectedly high sample rate in test controls
o May lead to an increase in the assessed level of control risk
- Unexpectedly high sample in substantive test
o May cause the auditor to believe that an account balance or class of transaction is
materially misstated
- Best estimated of error in the population
o Projected error + Anomalous error
Compliance test conducted on the sample: Test for attributes on PCVs and supporting documents
Conclusion: Low risk exist for the proper approval of petty cash disbursement
Note:
Tolerable deviation rate and Assessing control risk
Requirements Sample Design, Size and Selection of Items for Test ing
6. When designing an audit sample, the auditor shall consider the purpose of the audit procedure and
the characteristics of the population from which the sample will be drawn.
7. The auditor shall determine a sample size sufficient to reduce sampling risk to an acceptably low
level.
(b) Whether the use of audit sampling has provided a reasonable basis for conclusions about the
population that has been tested.