RSM 323 Lecture _6 Slides (6 per page)

RSM 323 Lecture _6 Slides (6 per page) - 15/10/2010 Audit...

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15/10/2010 1 Audit Sampling & Midterm Review 2 RSM323 Auditing I: Fal 2010 Agenda Recap of Lecture #5 Overview of the Audit Process Audit Sampling Midterm Review Case Assignment #1 Take-up 3 RSM323 Auditing I: Fal 2010 Recap of Lecture #5 Quiz #4 Any questions before moving on? 4 RSM323 Auditing I: Fal 2010 Overview of the Audit Process RSM323 Auditing I: Fal 2010 5 Audit Process 1. Perform Client Acceptance Procedures 2. Obtain an Understanding of the Engagement 3. Plan the Audit 4. Perform the Audit Procedures 5. Form an Opinion 6. Issue the Appropriate Report 6 RSM323 Auditing I: Fal 2010 Audit Sampling RSM323 Auditing I: Fal 2010 7
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15/10/2010 2 Audit Sampling Remember that audit does not provide 100% assurance and thus does not require that every item be audited Audit sampling is: The application of an audit procedure to less than 100% percent of the items within a population of audit relevance such that all sampling units have a chance of selection The purpose is to provide the auditor with a reasonable basis on which to draw conclusions about the entire population Sampling relates to the extent part of the nature, timing and extent of audit procedures 8 RSM323 Auditing I: Fal 2010 Audit Sampling Population The entire set of data from which a sample is selected and about which the auditor wishes to draw conclusions Sampling unit (Population unit) The individual items constituting a population Sample Items selected from the entire population for testing Sample item The individual items constituting a sample 9 RSM323 Auditing I: Fal 2010 Statistical Sampling Auditors define statistical sampling as audit sampling as an approach to sampling that has the following characteristics: Random selection of sample items The use of probability theory to evaluate the sample results,
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This note was uploaded on 05/09/2011 for the course RSM 323 taught by Professor Lisaharvey during the Spring '11 term at University of Toronto- Toronto.

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RSM 323 Lecture _6 Slides (6 per page) - 15/10/2010 Audit...

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