Appendix A - 2000.04 REV-2 CHG-lO Appendix A Attribute...

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2000.04 REV-2 CHG-lO Appendix A Attribute Sampling This appendix applies to all chapters in this audit guide. When planning to test a particular sample of transactions, the auditor should consider the specific audit objective to be achieved and should determine whether the auditprocedure or combination of procedures to be applied will achieve that objective. The size of a sample necessary to provide sufficient evidential matter depends on both the objectives and the efficiency of the sample. As noted in section l-7C of chapter 1, all material instances of noncompliance, including those identified through sampling, must he reported as findings in the audit report. Determining Test Objective, Defining the Population, and Defining an Exception. Before beginning testing, the auditor must understand and document what attribute and/or assertions are being tested. The auditor needs to identify and document the appropriate population and should also perform procedures (e.g., reconciliations, inquiry) to ensure that the population from which the samples are selected is complete. Each compliance requirement selected for testing should be considered a separate population, and samples should be selected accordingly. The sample selected could possibly be used to test multiple attributes within each compliance requirement. Additionally, auditors must assess the control environment at entities with multiple locations. If controls at the different locations are significantly different, each location must be considered a separate population. The auditor must document the “sampling unit,” which is the individual item subject to sampling in the population (i.e., reconciliations. loan files, cash disbursements. cash receipts, etc.).
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