L11 Notes_Part_8 - Discovery and Sequential Sampling...

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Judgmental Sampling: When and How? When? 1. experienced auditor 2. several years with client 3. small client How? 1. large balances, related party, risk of MM, cutoff 2. each type of transaction 3. transactions prepared by each person
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Audit Sampling Attribute Sampling in Tests of Controls Variables Sampling in Substantive Tests of Balances Statistical Nonstatistical Regular Discovery Sequential Directed Block Haphazard Statistical Probability Proportional to Size Classical DUS CMA CAV Mean per unit Difference Estimation Ratio Regression
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Unformatted text preview: Discovery and Sequential Sampling Sequential or Stop and Go Sampling This involves the selection of the smallest possible sample so that if failures don't occur, the auditor can conclude controls can be relied upon. If you find some errors, you pull another sample, if you find a lot of errors you quit. Discovery Sampling Purpose: to uncover at least one incident for investigation rather than estimate the maximum likely failure rate. Often used by internal auditors. It is a type of attribute sampling with zero EDR and low TDR...
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This note was uploaded on 10/05/2011 for the course ACG 5637 taught by Professor Monikacaushoulli during the Fall '08 term at University of Florida.

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L11 Notes_Part_8 - Discovery and Sequential Sampling...

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