Chap008 - Chapter 08 - Audit Sampling: An Overview and...

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Unformatted text preview: Chapter 08 - Audit Sampling: An Overview and Application to Tests of Controls Chapter 8 Audit Sampling: An Overview and Application to Tests of Controls Learning Objectives Review Questions Multiple- Choice Questions Problems Discussion Cases ACL Problems/ EarthWear Mini-Cases (EWMC) LO 1: Learn the definition of audit sampling and why auditors use sampling to gather evidence. 1 21 LO 2 : Understand basic sampling terminology. 2 17,19,20 21,22 32 LO 3: Learn the types of audit procedures that do and do not involve sampling. 3 22 LO 4: Learn the types of audit sampling. 4 11,12 22 LO 5: Learn the sampling requirements in auditing standards. 32 ACL EWMC LO 6: Learn how to apply attribute sampling to tests of controls. 5,6,8,9 12,13,14, 15,16,17, 18,19,20 23,24,25, 26,27,28 32 ACL EWMC LO 7: Work through an example of attribute sampling. 5,6,7,8,9 13,14,15, 16 23,24 EWMC LO 8: Learn how to apply nonstatistical sampling to tests of controls. 6,8,9,10 29,30,31 8-1 Chapter 08 - Audit Sampling: An Overview and Application to Tests of Controls END OF CHAPTER MATERIALS COMPARISION CHART Number in 7 th edition Comparison Number in 6 th edition 8-1 Unchanged 8-1 8-2 Unchanged 8-2 8-3 Revised 8-3 8-4 Unchanged 8-4 8-5 Unchanged 8-5 8-6 Replaced 8-6 8-7 Unchanged 8-7 8-8 Revised 8-8 8-9 Unchanged 8-9 8-10 Unchanged 8-10 8-11 Unchanged 8-11 8-12 Unchanged 8-12 8-13 Replaced 8-13 8-14 Unchanged 8-14 8-15 Unchanged 8-15 8-16 Revised 8-16 8-17 Unchanged 8-17 8-18 Unchanged 8-18 8-19 Unchanged 8-19 8-20 Unchanged 8-20 8-21 Unchanged 8-21 8-22 Replaced 8-22 8-23 Revised 8-23 8-24 Revised 8-24 8-25 Unchanged 8-25 8-26 Revised 8-26 8-27 Unchanged 8-27 8-28 Revised 8-28 8-29 Revised 8-29 8-30 Revised 8-30 8-31 Unchanged 8-31 8-32 Unchanged 8-32 8-2 Chapter 08 - Audit Sampling: An Overview and Application to Tests of Controls Chapter 8 has two objectives: (1) to provide an overview of audit sampling and (2) to apply sampling techniques to tests of controls. Although most students will have had a statistics course prior to taking auditing, we find that it is necessary to review basic statistical concepts. This helps to refresh the students' memories and to introduce the terms used in auditing to describe basic statistical concepts. Introduction We begin by asking the students why there is a need for sampling. Then we give the students an overview of the similarities and differences between statistical and nonstatistical sampling without getting technical at this point, and explain that nonstatistical sampling is now most common. We then spend a few minutes discussing how technology has impacted the need for sampling. [LO 1] Definitions and Key Concepts Audit Sampling We start the presentation by defining audit sampling and then point out that when sampling is used, the auditor must be concerned about both sampling and nonsampling risk as discussed in Chapter 3. Audit sampling is defined as: The application of audit procedures to less than 100 percent of the items in a population of audit relevance selected in such a...
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This note was uploaded on 04/05/2011 for the course ACC 311 taught by Professor Hogwarts during the Spring '11 term at Michigan State University.

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Chap008 - Chapter 08 - Audit Sampling: An Overview and...

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