Audit I Audit Sampling0

Audit I Audit Sampling0 - Audit Sampling Audit Sampling...

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Audit Sampling
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Audit Sampling What is audit sampling? Evaluating less than 100% of the population in order to draw conclusions about the entire population Is sampling required in a GAAS audit? Risk in the use of sampling Non-sampling risk (human error)
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Audit Sampling Two sampling approaches: non-statistical and statistical Both involve auditor judgment Both have sampling risk Statistical sampling uses the laws of mathematics and probability to determine sample size and interpret the results while non-statistical does not In theory, sample sizes from both approaches should be approximately the same (350.22)
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Audit Sampling Sampling risk can be divided into two basic types: Type I: The risk of incorrect rejection Type II: The risk of incorrect acceptance Sampling can be applied when doing (1)tests of controls or (2)when conducting substantive test
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Audit Sampling Tests of Controls Sampling Risks Type I Error: Concluding an internal control is not functioning efficiently and effectively when, in fact, it is (risk of incorrect rejection, risk of under-reliance, risk of assessing CR too high, an audit efficiency issue) Type II Error: Concluding that an internal control is functioning efficiently and effectively when, in fact, it is not (risk of incorrect acceptance, risk of over-reliance, risk of assessing CR too low, an audit effectiveness issue)
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Audit Sampling When evaluating Internal Control using statistical sampling, the sampling approach is referred to as Attribute Sampling The purpose is to project the percentage
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This note was uploaded on 02/21/2012 for the course ACCT 420 taught by Professor A during the Fall '11 term at Samford.

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Audit I Audit Sampling0 - Audit Sampling Audit Sampling...

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