Unformatted text preview: s A sample
Statistical Type of
sampling Nonstatistical Statistical Type of
sampling Nonstatistical 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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This note was uploaded on 04/17/2013 for the course ACC 5218 taught by Professor Jenifer during the Two '08 term at Federation University.
 Two '08
 Jenifer

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