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    Auditing Report Huhu

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    Remar James Dollete
    The document discusses various statistical sampling methods used in auditing including random sampling, systematic sampling, stratified sampling, and attributes sampling. It also covers important sampling concepts like sample size, materiality, internal control, relative risk, evaluation of sample results, acceptance sampling, discovery sampling, estimation sampling, and the steps to apply audit sampling in tests of controls. Non-statistical attribute sampling is also mentioned.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Auditing Report Huhu

    Uploaded by

    Remar James Dollete
    45 views26 pages
    The document discusses various statistical sampling methods used in auditing including random sampling, systematic sampling, stratified sampling, and attributes sampling. It also covers important sampling concepts like sample size, materiality, internal control, relative risk, evaluation of sample results, acceptance sampling, discovery sampling, estimation sampling, and the steps to apply audit sampling in tests of controls. Non-statistical attribute sampling is also mentioned.

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    AUDITING REPORT HUHU

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    The document discusses various statistical sampling methods used in auditing including random sampling, systematic sampling, stratified sampling, and attributes sampling. It also covers important sampling concepts like sample size, materiality, internal control, relative risk, evaluation of sample results, acceptance sampling, discovery sampling, estimation sampling, and the steps to apply audit sampling in tests of controls. Non-statistical attribute sampling is also mentioned.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    45 views26 pages

    Auditing Report Huhu

    Uploaded by

    Remar James Dollete
    The document discusses various statistical sampling methods used in auditing including random sampling, systematic sampling, stratified sampling, and attributes sampling. It also covers important sampling concepts like sample size, materiality, internal control, relative risk, evaluation of sample results, acceptance sampling, discovery sampling, estimation sampling, and the steps to apply audit sampling in tests of controls. Non-statistical attribute sampling is also mentioned.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 26

    Statistical

    Sampling
    Selection Methods
    Random Sampling
    • Selects the sample completely at random from the entire
    population.
    • Each item in the population has the same chance of being
    selected.
    Systematic Sampling
    • Other term : Interval Sampling
    • Draws every nth item in the population for inclusion in the
    sample with a random starting point.
    • Si auditor subong may gina sunod na nga rule/pattern sa
    pag pili niya sang iya sample sa population.
    • See illustration sa book.
    Stratified Sampling
    • The population is subdivided into groups for greater
    homogeneity.
    • The sample results of each groups are combined to obtain
    the estimate of the total population value.
    Sample Size
    • To determine the sample size the auditor should consider
    whether sampling risk is reduced to an acceptably low
    level.
    • The lower the risk he is willing to accept, the greater the
    sample size will be needed.
    Materiality
    • Is a concept or convention within auditing and accounting
    relating to the importance/significance of an amount.
    The Quality of Internal Control
    • Affects the sample size and the extent of sampling
    methods needed.
    • If internal control is weak and the auditor needs more
    assurance, he increases the size of the sample.
    Relative Risk
    • Is the susceptibility of an account to error or
    irregularities.
    • Is often used when the study involves comparing the
    likelihood, or chance, of an event occurring between two
    groups.
    Evaluation of Sample Results
    • To determine whether the preliminary assessment of the
    relevant characteristics of the population is confirmed or
    needs to be revised.
    • The auditor must analyze any error detected in the
    sample.
    Audit Sampling for Tests of
    Controls/Attribute Sampling
    • Attribute Sampling may be statistical or non-statistical
    sampling.
    • Statistical Sampling has 3 types of sampling procedures.
    Estimation Sampling
    A statistical method used by auditors to determine the
    proper sampling size for determining whether accounting
    controls are being followed or not, as part of an audit.
    Estimation sampling is used to calculate what the minimum
    sample size should be.
    Discovery Sampling
    • Is adapted when intentional or unintentional errors are
    believed to be possible.
    • Population would be accepted if zero errors were
    discovered but will be rejected if an error was discovered.
    Acceptance Sampling
    • The auditor uses Acceptance Sampling to determine
    acceptability of the population and will require a “yes” or
    “no” decision.
    • The auditor may accept or reject a group of items whose
    sample results differ from expected.
    Steps in the Application of Audit
    Sampling in Tests of Controls
    • Step 1 : Identify audit objective and control to be tested.
    • Step 2 : Define the attribute and deviation condition/error.
    • Step 3 : Define the population and the sampling risk.
    • Step 4 : Determine the tolerable deviation rate and the risk
    of assessing control risk too low.
    • Step 5 : Specify the expected population deviation rate.
    • Step 6 : Determine the sample size.
    • Step 7 : Select the sample.
    • Step 8 : Perform the compliance test on the sample items.
    • Step 9 : Evaluate the sample results
    • Step 10 : Documentation of the results of attribute
    sampling tests of control.
    Non-Statistical Attributes
    Sampling
    • Non-statistical sampling is the selection of a test group
    that is based on the examiner's judgement, rather than
    a formal statistical method. For example, an examiner
    could use his own judgment to determine one or more of
    the following:
    - The sample size
    - The items selected for the test group
    - How the results are evaluated

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