tailieunhanh - Lecture Auditing and assurance services in Australia (4th ed): Chapter 11 - Grant Gay, Roger Simnett

Chapter 11 - Audit sampling. In this chapter we will discuss: define audit sampling and its objective and describe the requirements that apply to all audit samples - statistical and non-statistical, identify the various means of gathering audit evidence, identify factors influencing the determination of sample size. | Chapter 11 Audit sampling 11- Copyright 2010 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia 4e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Learning objective 1: Definition and features Audit sampling: the application of an audit procedure to less than 100% of the items within a population to obtain audit evidence about particular characteristics of the population. Audit sampling is important because it provides information on: How many items to examine Which items to select How sample results are evaluated and extrapolated to the population in order to tell us something about the population (. level of misstatement). 11- Copyright 2010 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia 4e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Non-sampling and sampling risk defined Sampling risk: the probability that the auditor has reached an incorrect conclusion because audit sampling was used rather than 100% examination (ASA/ISA ). Non-sampling risk: arises from factors, other than sample size, that cause an auditor to reach an incorrect conclusion, such as the possibility that: The auditor will fail to recognise misstatements included in examined items The auditor applies a procedure that is not effective in achieving a specific objective. 11- Copyright 2010 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia 4e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Characteristic of interest When sampling, the auditor identifies a particular characteristic of the population to focus upon. For tests of control, the characteristic of interest is the rate of deviation from an internal control policy or procedure. For substantive tests, the characteristic of interest is monetary misstatement in the balance. 11- Copyright 2010 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and | Chapter 11 Audit sampling 11- Copyright 2010 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia 4e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Learning objective 1: Definition and features Audit sampling: the application of an audit procedure to less than 100% of the items within a population to obtain audit evidence about particular characteristics of the population. Audit sampling is important because it provides information on: How many items to examine Which items to select How sample results are evaluated and extrapolated to the population in order to tell us something about the population (. level of misstatement). 11- Copyright 2010 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia 4e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Non-sampling and sampling risk defined Sampling risk: the probability that the auditor has reached an incorrect .