PSA-530 - Auditing Standards and Practices Council...

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Philippine Standard on Auditing 530 AUDIT SAMPLING AND OTHER SELECTIVE TESTING PROCEDURES Auditing Standards and Practices Council
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PSA 530 PHILIPPINE STANDARD ON AUDITING 530 AUDIT SAMPLING AND OTHER SELECTIVE TESTING PROCEDURES CONTENTS Paragraphs Introduction 1-2 Definitions 3-12 Audit Evidence 13 Tests of Control 14-16 Substantive Procedures 17 Risk Considerations in Obtaining Evidence 18-20 Procedures for Obtaining Evidence 21 Selecting Items for Testing to Gather Audit Evidence 22-23 Selecting All Items 24 Selecting Specific Items 25-26 Audit Sampling 27 Statistical versus Non-statistical Sampling Approaches 28-30 Design of the Sample 31-34 Population 35 Stratification 36-38 Value Weighted Selection 39 Sample Size 40-41 Selecting the Sample 42-43 Performing the Audit Procedure 44-46 Nature and Cause of Errors 47-50 Projecting Errors 51-53
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PSA 530 Evaluating the Sample Results 54-56 Effective Date 57-58 Acknowledgment 59-60 Appendix 1: Examples of Factors Influencing Sample Size for Tests of Control Appendix 2: Examples of Factors Influencing Sample Size for Substantive Procedures Appendix 3: Sample Selection Methods Philippine Standards on Auditing (PSAs) are to be applied in the audit of financial statements. PSAs are also to be applied, adapted as necessary, to the audit of other information and to related services. PSAs contain the basic principles and essential procedures (identified in bold type black lettering) together with related guidance in the form of explanatory and other material. The basic principles and essential procedures are to be interpreted in the context of the explanatory and other material that provide guidance for their application. To understand and apply the basic principles and essential procedures together with the related guidance, it is necessary to consider the whole text of the PSA including explanatory and other material contained in the PSA not just that text which is black lettered. In exceptional circumstances, an auditor may judge it necessary to depart from a PSA in order to more effectively achieve the objective of an audit. When such a situation arises, the auditor should be prepared to justify the departure. PSAs need only be applied to material matters.
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The PSAs issued by the Auditing Standards and Practices Council (Council) are based on International Standards on Auditing (ISAs) issued by the International Auditing Practices Committee of the International Federation of Accountants. The ISAs on which the PSAs are based are generally applicable to the public sector, including government business enterprises. However, the applicability of the equivalent PSAs on Philippine public sector entities has not been addressed by the Council. It is the understanding of the Council that this matter will be addressed by the Commission on Audit itself in due course. Accordingly, the Public Sector Perspective set out at the end of an ISA has not been adopted into the PSAs. Deleted:
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PSA-530 - Auditing Standards and Practices Council...

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