Week 4 - DQs - Week 4 DQ 1 Why do auditors find it...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Week 4 DQ 1 Why do auditors find it necessary to use sampling? What are the risks associated with sampling? How might these risks affect the audit conclusion? Economics have an impact on why auditors use sampling. It is not economic sound to have all data audited. By sampling the data, auditors review what they deem large enough data that will allow them to make a reasonable opinion. A risk associated with sampling is the assumption made in selecting the data. If the wrong data is selected, misleading results will occur. For substantive sampling, there are risks of rejection or incorrectly being accepted. If the sampling is to gauge control risk, the risk will be in setting the assessment too low or too high. If bogus transactions are missed during the sampling, all transactions will be assumed to be similar. The auditor needs to check for possible bogus transactions and where they are located and select data from the area where they are located. DQ 2
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/07/2011 for the course ACCT 490 taught by Professor Richard during the Spring '11 term at DeVry Long Beach.

Page1 / 2

Week 4 - DQs - Week 4 DQ 1 Why do auditors find it...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online