LECTURE_8_Module_9_Sampling_S2_2008

# All items a sample statistical type of sampling non

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Unformatted text preview: s A sample Statistical Type of sampling Non-statistical Statistical Type of sampling Non-statistical Determine sample size from model explicitly recognising relevant factors Judgementally determine sample size implicitly recognising relevant factors Randomly select Randomly representative sample Judgementally select representative sample Apply audit procedures Apply audit procedures Evaluate test results statistically and judgementally Evaluate results judgementally Document conclusions Statistical Sampling Plans Sampling technique Type of test Purpose attribute sampling test of control estimate rate of deviations from prescribed controls in the population PPS sampling substantive estimate total \$ amount of error in the population Statistical Sampling Techniques xChoice of statistical sampling method Attribute PPS Sampling for Tests of Control Sampling for Substantive Procedures Use of Samples for Audit Tests x 1. Planning the sample involves the following steps 1. Determining the objectives of the test − Test of control and/or − Substantive tests of details 2. Defining errors or deviations being sought 3. Identifying the population and sampling unit 4. Deciding the size of the sample 2. Calculating Sample Size n = RF / TDR Where x n = Sample Size x RF = Reliability Factor x TDR = Tolerable Deviation Rate Sample Testing Attribute Testing of Controls x Once sample selected perform audit procedures to check for errors applying appropriate audit procedures to ensure achievement of the audit objective x Rate/number of errors found in the sample is inferred to population by calculating the Upper Error / Deviation Limit or UEL Upper Error / Deviation Limit (UEL) x The maximum amount of deviations from controls that could exist in the population based on sample results UEL = RF / n x Where n = Sample Size x RF = Reliability Factor based on the number of errors / deviations actually found after testing the sample 3. Evaluate Sample Results x Quantitative Evaluation 1. Compare Upper Error / Deviation Limit agai...
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