L8_VerificationI(Student)

L8_VerificationI(Student) - AUDIT SAMPLING 1 INTRODUCTION...

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AUDIT SAMPLING 1
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INTRODUCTION s Audit sampling as “ the application of audit procedures to less than 100% of the items within an account balance or 2 class of transactions E.”
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REASONS FOR SAMPLING s Uneconomical s Materiality does not require checking mphasis is on nd 3 s Emphasis is on and .
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STEPS IN AUDIT SAMPLING s Design of the sample considering audit objectives election of sample 4 s Selection of sample s Evaluation of sample results
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STATISTICAL SAMPLING s Characteristics: – random selection theory to determine sample size. s Advantages: 5 – scientific – provides probabilities – may avoid too large sample size – inexperienced staff can use s Disadvantages: – limited application on cases where is needed – take too much time to set up – conclusions from rigid adherence of stat. principles.
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SAMPLING s Characteristics: – may use non random selection rely on probability theory dvantages: 6 s Advantages: – use judgement and expertise – no special knowledge of statistics is required – little to play with stat. s
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L8_VerificationI(Student) - AUDIT SAMPLING 1 INTRODUCTION...

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