11 - 1 Copyright 2003 Pearson Education Canada Inc. CHAPTER 11 Audit Sampling Concepts
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CHAPTER 11Audit Sampling
Concepts
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What is a What is a representativerepresentative sample? sample?
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What is a What is a representativerepresentative sample? sample?A representative sample has the samecharacteristics as the population from
which the sample was taken.
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What can make a sample What can make a sample nonnon--representative?representative?
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What can make a sample What can make a sample nonnon--representative?representative?
- sampling errors
?
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What can make a sample What can make a sample nonnon--representative?representative?
Sampling errorsoccur because of the nature
of sampling; the propersampling method was selected,
applied, and interpreted but failed to uncover material
misstatements.
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What can an auditor do to reduce What can an auditor do to reduce the risk of the risk of sampling errorssampling errors??
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What can an auditor do to reduce What can an auditor do to reduce the risk of the risk of sampling errorssampling errors??
increase sample size
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What can make a sample What can make a sample nonnon--representative?representative?
- sampling errors- nonsampling errors
?
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What can make a sample What can make a sample nonnon--representative?representative?
- sampling errors- nonsampling errors result from auditor failure to recognize errors or excep- tions or from the selection of ineffec- tive or inappropriate procedures
oops!
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What can an auditor do to reduce What can an auditor do to reduce the risk of the risk of nonsampling errorsnonsampling errors??
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What can an auditor do to reduce What can an auditor do to reduce the risk of the risk of nonsampling errorsnonsampling errors??increase auditor competence
Continuing Professional Education
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Audit sampling can be based on: Audit sampling can be based on:
statisticsOR
judgment
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nonstatistical sampling statistical sampling
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primaryadvantage:
the auditrisk can bequantified
nonstatistical sampling statistical sampling
primaryadvantage:
employsauditor’s
experienceand
judgment
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nonstatistical sampling statistical sampling
primaryadvantage:
thesampling
risk can bequantified
primaryadvantage:
employsauditor’s
experienceand
judgment
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nonstatistical sampling statistical sampling
determine sample size explicitly recognizing relevant factors
judgmentallydetermine sample size implicitly recognizing relevant factors
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nonstatistical sampling statistical sampling
determine sample size explicitly recognizing relevant factors
randomly select arepresentative sample
judgmentallydetermine sample size implicitly recognizing relevant factors
judgmentally select arepresentative sample
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determine sample size explicitly recognizing relevant factors
randomly select arepresentative sample
apply audit procedures
judgmentallydetermine sample size implicitly recognizing relevant factors
judgmentally select arepresentative sample
apply audit procedures
nonstatistical sampling statistical sampling
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nonstatistical sampling statistical sampling
determine sample size explicitly recognizing relevant factors
randomly select arepresentative sample
apply audit procedures
evaluate test results statistically and judgmentally
judgmentallydetermine sample size implicitly recognizing relevant factors
judgmentally select arepresentative sample
apply audit procedures
evaluate test results judgmentally
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nonstatistical sampling judgmentally select arepresentative sample
sample selection
Nonstatistical sampling employsnonprobabilistic selection - the auditor decides which population items to select.
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nonprobabilistic selection methods- judgmental (directed sample) selection auditor selects items based on charac- teristics because random selection does not consider: ~ each type of transaction
sample selectionnonstatistical sampling judgmentally select arepresentative sample
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nonprobabilistic selection methods- judgmental (directed sample) selection auditor selects items based on charac- teristics because random selection does not consider: ~ each type of transaction ~ each preparer of transactions
sample selectionnonstatistical sampling judgmentally select arepresentative sample
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nonprobabilistic selection methods- judgmental (directed sample) selection auditor selects items based on charac- teristics because random selection does not consider: ~ each type of transaction ~ each preparer of transactions ~ large dollar balances
sample selectionnonstatistical sampling judgmentally select arepresentative sample
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sample selection
nonprobabilistic selection methods- block sampling - selection of a sequence and examining every item in the sequence
Example: examine all cancelled cheques of February
Ace Corporation 324
$pay to the order of
date
nonstatistical sampling judgmentally select arepresentative sample
CANADIAN BANK
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nonprobabilistic selection methods- haphazard selection - auditor selects items without regard to characteristics
sample selection
Bewareof bias!
nonstatistical sampling judgmentally select arepresentative sample
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statistical sampling randomly select arepresentative sample sample selection
Statistical sampling employs probabilistic selection - every population item has a known
chance of being selected.
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statistical sampling randomly select arepresentative sample
sample selection
probabilistic selection methods- simple random sample selection
used to sample populations
that are not segmentedfor audit purposes
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statistical sampling randomly select arepresentative sample
sample selection
probabilistic selection methods- random number tables
Howdoes an
auditor userandom
number tables?
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statistical sampling randomly select arepresentative sample
sample selection
probabilistic selection methods- use of random number table 1. number each population item 2. establish correspondence between table and population 3. establish a route in the table 4. select a random starting point 5. document the method
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statistical sampling randomly select arepresentative sample
sample selection
probabilistic selection methods- computer generation of random numbers
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statistical sampling randomly select arepresentative sample
sample selection
probabilistic selection methods- systematic selection - the auditor cal- culates an interval, starts at random, and selects every nth item.
Beware of possible bias with numeric tests,e.g., every 314th cheque is written on a Friday.
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statistical sampling randomly select arepresentative sample
sample selection
probabilistic selection methods- probability proportional to size and stratified sample selection
discussed in chapter 14
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Audit SamplingAudit Sampling
?
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Auditsampling is amethod used
to determine theproportion of
population itemscontaining a
particular attribute.
Audit SamplingAudit Sampling
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When is audit sampling When is audit sampling
appropriate?appropriate?
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When is audit When is audit sampling sampling
appropriate?appropriate?
Example:credit
authorization of sales
SALES INVOICE 38527 Date: Ace Company Customer: 834 Reynolds Rd. Winnipeg, MB R2V 4E3 Sales Representative: Quantity Description Price
total invoice amount
Terms of sale (including discounts and freight costs): Carrier: Credit authorization:
tests of controls
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Audit Sampling Terms Audit Sampling Terms - attribute - the tested characteristic
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- attribute- acceptable risk of assessing control risk too low (ARACR)- the risk that the auditor is willing to accept that con- trols are accepted as effective, but the actual population exception rate is greater than the TER
Audit Sampling Terms Audit Sampling Terms
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- attribute- acceptable risk of assessing control risk too low (ARACR)- tolerable exception rate (TER) - the population exception rate the auditor will permit and still be willing to use the assessed control risk and/or the amount of monetary misstatements in the transactions established during planning
Audit Sampling TermsAudit Sampling Terms
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- attribute- acceptable risk of assessing control risk too low (ARACR)- tolerable exception rate (TER) - estimated population exception rate (EPER) - the exception rate that the auditor expects to find (this estimate is made prior to any testing)
Audit Sampling TermsAudit Sampling Terms
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- attribute- acceptable risk of assessing control risk too low (ARACR)- tolerable exception rate (TER) - estimated population exception rate (EPER)- initial sample size - determined judg- mentally by the auditor implicitly con- sidering the ARACR, TER, EPER, and population size
Audit Sampling TermsAudit Sampling Terms
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- attribute- acceptable risk of assessing control risk too low (ARACR)- tolerable exception rate (TER) - estimated population exception rate (EPER)- initial sample size- exception - a deviation from the tested characteristic
Audit Sampling TermsAudit Sampling Terms
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- attribute- acceptable risk of assessing control risk too low (ARACR)- tolerable exception rate (TER) - estimated population exception rate (EPER)- initial sample size- exception- sample exception rate (SER):
number of exceptionssample size
Audit Sampling TermsAudit Sampling Terms
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- attribute- acceptable risk of assessing control risk too low (ARACR)- tolerable exception rate (TER) - estimated population exception rate (EPER)- initial sample size- exception- sample exception rate (SER)- computed upper exception rate (CUER) - considering the extent of exceptions, the worst likely population exception rate
Audit Sampling TermsAudit Sampling Terms
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Audit Sampling Sequence Audit Sampling Sequence
?
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SALES INVOICE 38527 Date: Acme Company Customer: 834 Reynolda Rd. Winnipeg, MB R2V 4E3 Sales Representative: Quantity Description Price
total invoice amount Est. shipment date: Terms of sale (including discounts and freight costs): Carrier:
Credit authorization:
1. State the objectives of the audit test.Example: The auditor is testing proper credit approval of sales.
Audit Sampling SequenceAudit Sampling Sequence
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2. Decide if audit sampling applies.
yes noaudit
samplingis
appropriate
audit sampling
is notappropriate
Does the auditorplan to reach
conclusions basedon a sample?
Audit Sampling Sequence Audit Sampling Sequence
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3. Define attributes and exception conditions.
In theexample, what is
the attribute?
Audit Sampling SequenceAudit Sampling Sequence
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SALES INVOICE 38527 Date: Acme Company Customer: 834 Reynolda Rd. Winnipeg, MB R2V 4E3 Sales Representative: Quantity Description Price
total invoice amount
Est. shipment date: Terms of sale (including discounts and freight costs): Carrier:
Credit authorization:
Joe Credit
thesignature
of thecredit
manageron thesales
invoice
In theexample, what is
the attribute?
3. Define attributes and exception conditions.
Audit Sampling SequenceAudit Sampling Sequence
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3. Define attributes and exception conditions.
In theexample, what is
the exceptioncondition?
Audit Sampling SequenceAudit Sampling Sequence
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SALES INVOICE 38527 Date: Acme Company Customer: 834 Reynolda Rd. Winnipeg, MB R2V 4E3 Sales Representative: Quantity Description Price
total invoice amount
Est. shipment date: Terms of sale (including discounts and freight costs): Carrier:
Credit authorization:
forged signatureof credit manag-er, no signature,
signature of someone else
Jill Accountant
In theexample, what is
the exceptioncondition?
3. Define attributes and exception conditions.
Audit Sampling SequenceAudit Sampling Sequence
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4. Define the population.
In theexample, what is the
population?
audit sampling sequence audit sampling sequence
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4. Define the population.
2004 sales invoices(sequence 10397 - 40465)Population size = 30,068.
In theexample, what is the
population?
Audit Sampling SequenceAudit Sampling Sequence
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5. Define the sampling unit.
In theexample, what is the
sampling unit?
Audit Sampling SequenceAudit Sampling Sequence
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5. Define the sampling unit.
onesales invoice
In theexample, what is the
sampling unit?
Audit Sampling SequenceAudit Sampling Sequence
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6. Specify the tolerable exception rate.
This determination is based on:- auditor judgment- materiality- importance of the attribute
Audit Sampling SequenceAudit Sampling Sequence
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In the example, the auditor needs to ask:concerning the indication of credit ap-
proval on sales invoices, what percent ofinvoices without appropriate approval
would prevent auditor use of the assessedcontrol risk and/or the amount of monetary
misstatement in the transactionsestablished during planning.
6. Specify the tolerable exception rate.
Audit Sampling SequenceAudit Sampling Sequence
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6. Specify the tolerable exception rate.
Audit Sampling SequenceAudit Sampling Sequence
In the example, the auditors judgmentally assess the tolerable exception rate
(TER):
TER = 7%
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When would the auditorWhen would the auditorestablish a establish a lowlow TER? TER?
Audit Sampling SequenceAudit Sampling Sequence
6. Specify the tolerable exception rate.
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When would the auditorWhen would the auditorestablish a establish a lowlow TER? TER?
when the auditoris less willing to accept excep-
tions (e.g., cash controls)
Audit Sampling Sequence Audit Sampling Sequence
6. Specify the tolerable exception rate.
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7. Specify the acceptable risk of assess- ing control risk too low (ARACR).
To what degreedoes the auditor wantto rely on controls?
Audit Sampling SequenceAudit Sampling Sequence
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low reliance on controls = high ARACRhigh reliance on controls = low ARACR
To what degreedoes the auditor wantto rely on controls?
Audit Sampling SequenceAudit Sampling Sequence
7. Specify the acceptable risk of assess- ing control risk too low (ARACR).
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To what degreedoes the auditor wantto rely on controls?
In the example, the auditors judgmentallyassess the acceptable risk of assessing con-trol risk too low:
ARACR = medium
Audit Sampling SequenceAudit Sampling Sequence7. Specify the acceptable risk of assess- ing control risk too low (ARACR).
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8. Estimate the population exception rate (EPER) - estimate based on prior year year audit or small preliminary sample
For theexample: EPER = 4%
Audit Sampling SequenceAudit Sampling Sequence
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9. Determine the initial sample size (SS).
considered initial because the auditor may later decide to sample more
Audit Sampling SequenceAudit Sampling Sequence
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9. Determine the initial sample size (SS).
Determined judgmentallybased on
= 30,068= 7%= 10%= 4%
pop.TERARACREPER
Audit Sampling SequenceAudit Sampling Sequence
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Sample Size Determination Sample Size Determination RELATIONSHIPFACTOR TO SAMPLE SIZEARACR inverseTER inverseEPER directPop. size no effect (if pop.> 5,000)
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9. Determine the initial sample size (SS).
sample size = 150
= 30,068= 7%= medium= 4%
pop.TERARACREPER
Audit Sampling Sequence Audit Sampling Sequence
Determined judgmentallybased on
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SALES INVOICE 38527 Date: Acme Company Customer: 834 Reynolda Rd. Winston-Salem, NC27109 Sales Representative: Quantity Description Price
total invoice amount
Est. shipment date: Carrier:
Credit authorization: Joe Credit
10. Select the sample.11. Perform the audit procedures.
how?
Audit Sampling SequenceAudit Sampling Sequence
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SALES INVOICE 38527 Date: Acme Company Customer: 834 Reynolda Rd. Winston-Salem, NC27109 Sales Representative: Quantity Description Price
total invoice amount
Carrier:
Credit authorization: Joe Credit
10. Select the sample.11. Perform the audit procedures.Of 150
invoicesexamined, 7
had no credit
approval.
Audit Sampling SequenceAudit Sampling Sequence
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12. Generalize from the sample to the population.
= 30,068= 7%= medium= 4%= 150= 7
pop.TERARACREPERSSexceptions
Audit Sampling SequenceAudit Sampling Sequence
Considering these factors,judgmentally determine CUER
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12. Generalize from the sample to the population.
= 30,068= 7%= medium= 4%= 150= 7
pop.TERARACREPERSSexceptions
Audit Sampling SequenceAudit Sampling Sequence
Considering these factors,judgmentally determine CUER
CUER= 8%
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What does this mean?
Audit Sampling SequenceAudit Sampling Sequence
CUER= 8%
12. Generalize from the sample to the population.
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There is a mediumrisk (ARACR) that the
true exception rate > 8%
Audit Sampling SequenceAudit Sampling Sequence12. Generalize from the sample to the population.
CUER= 8%
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13. Analyze the exceptions. Is there a justifiable reason?
In the example, the auditors found 7 sales in-voices without credit approval. Could they besales to internal departments or subsidiaries?
Audit Sampling SequenceAudit Sampling Sequence
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14. Decide on the acceptability of the population.
Decision ruleDecision rule::For population acceptability:
CUER CUER << TER TER
Audit Sampling SequenceAudit Sampling Sequence
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8% < 7%
Decision ruleDecision rule::For population acceptability:
CUER CUER << TER TERThe population is
not acceptable; the controls regarding theindication of credit approval on sales
invoices are not satisfactory.
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When an internal control is When an internal control is judged unacceptable, what judged unacceptable, what
options does the auditor have?options does the auditor have?
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- revise the TER and/or ARACR
This may beconsidered ethically questionable.
WHY?
When an internal control is When an internal control is judged unacceptable, what judged unacceptable, what
options does the auditor have?options does the auditor have?
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- expand the sample size
When is this appropriate?
When an internal control is When an internal control is judged unacceptable, what judged unacceptable, what
options does the auditor have?options does the auditor have?
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This is only appropriateif the auditor believes thatthe sample was not repre-
sentative of the population.
When an internal control is When an internal control is judged unacceptable, what judged unacceptable, what
options does the auditor have?options does the auditor have?
- expand the sample size
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- revise the assessed control risk up- ward, and increase tests of details of balances for related accounts (a/r, sales, bad debt expense, allowance for doubtful accounts)
When an internal control is When an internal control is judged unacceptable, what judged unacceptable, what
options does the auditor have?options does the auditor have?
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When an internal control is When an internal control is judged unacceptable, the judged unacceptable, the
auditor is auditor is requiredrequired to to communicate this weakness communicate this weakness
to management, and may to management, and may inform the audit committee as inform the audit committee as
well.well.
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Audit Sampling SequenceAudit Sampling Sequence
1. State the objectives of the audit test.
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1. State the objectives of the audit test.Example: The auditor wants to deter-mine the acceptability of the notes re-ceivable balance of $600,000.
notes receivable $600,000
acceptable?
Audit Sampling SequenceAudit Sampling Sequence
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1. Determine the objectives of the test.2. Decide if audit sampling applies.
Doesthe auditor
plan to reachconclusionsbased on a
sample?
Audit Sampling SequenceAudit Sampling Sequence
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1. Determine the objectives of the test.2. Decide if audit sampling applies.3. Define misstatement conditions.
?
Audit Sampling SequenceAudit Sampling Sequence
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1. Determine the objectives of the test.2. Decide if audit sampling applies.3. Define misstatement conditions.
Misstatementconditions are any conditions
that represent monetary fraud, errors or irregularities
in the accounting records.
Audit Sampling SequenceAudit Sampling Sequence
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1. Determine the objectives of the test.2. Decide if audit sampling applies.3. Define misstatement conditions.4. Define the population.
?
Audit Sampling SequenceAudit Sampling Sequence
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1. Determine the objectives of the test.2. Decide if audit sampling applies.3. Define misstatement conditions.4. Define the population.
notesreceivable
dollars
Audit Sampling SequenceAudit Sampling Sequence
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1. Determine the objectives of the test.2. Decide if audit sampling applies.3. Define misstatement conditions.4. Define the population.5. Define the sampling unit.
?
Audit Sampling SequenceAudit Sampling Sequence
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1. Determine the objectives of the test.2. Decide if audit sampling applies.3. Define misstatement conditions.4. Define the population.5. Define the sampling unit.
onecustomer
name or loannumber
Audit Sampling SequenceAudit Sampling Sequence
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1. Determine the objectives of the test.2. Decide if audit sampling applies.3. Define misstatement conditions.4. Define the population.5. Define the sampling unit.6. Specify tolerable misstatement.
What amount of monetary fraud, erroror irregularity can exist in notes receivable without causing the financial statements to
be materially misstated?
Audit Sampling SequenceAudit Sampling Sequence
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6. Specify tolerable misstatement.
based onauditor judgment
Audit Sampling SequenceAudit Sampling Sequence
What amount of monetary fraud, erroror irregularity can exist in notes receivable without causing the financial statements to
be materially misstated?
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6. Specify tolerable misstatement.
In the notesreceivable example, tolerable mis-statement is established at $24,000for both over- and understatements.
Audit Sampling SequenceAudit Sampling Sequence
What amount of monetary fraud, erroror irregularity can exist in notes receivable without causing the financial statements to
be materially misstated?
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7. Specify acceptable risk of incorrect acceptance.
What level of risk is theauditor willing to take of concluding
that the account balance is not materi-ally misstated when, in fact, it is
materially misstated.
Audit Sampling SequenceAudit Sampling Sequence
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7. Specify acceptable risk of incorrect acceptance.
What level of risk is theauditor willing to take of concluding
that the account balance is not materi-ally misstated when, in fact, it is
materially misstated.
also based onauditor judgment
Audit Sampling SequenceAudit Sampling Sequence
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7. Specify acceptable risk of incorrect acceptance.
What level of risk is theauditor willing to take of concluding
that the account balance is not materi-ally misstated when, in fact, it is
materially misstated.
In thenotes receivable example,ARIA is established at 5%.
Audit Sampling SequenceAudit Sampling Sequence
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8. Estimate misstatements in the population.
What is the amount of mis-statement that the auditor expects
to find in the population?
Audit Sampling SequenceAudit Sampling Sequence
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What is the amount of mis-statement that the auditor expects
to find in the population?
based onauditor judgment and prior
year results
8. Estimate misstatements in the population.Audit Sampling SequenceAudit Sampling Sequence
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What is the amount of mis-statement that the auditor expects
to find in the population?
In the example,EPER is 1.5%; i.e., the auditor expects that 1.5% of the notes
receivable balance is misstated.
8. Estimate misstatements in the population.Audit Sampling SequenceAudit Sampling Sequence
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9. Determine the initial sample size.
For nonstatistical sampling, professional judgment of auditor is used to determine initial sample size.
Audit Sampling SequenceAudit Sampling Sequence
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9. Determine the initial sample size.
For statistical sampling of test of controls, population size, TER, ARACR, and EPER are all factors used to determine initial sample size.
Audit Sampling SequenceAudit Sampling Sequence
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Audit Sampling SequenceAudit Sampling Sequence10. Select the sample.
Nonprobabilistic: - Directed sample selection
- Block sample selection - Haphazard sample selection
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Audit Sampling SequenceAudit Sampling Sequence
10. Select the sample.
Probabilistic: - Simple random sample selection
- Systematic sample selection - Probability proportionate-to-size
sample selection
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11. Perform the audit procedures.
Through confirmationof selected notes receivable
balances, $1,380 of misstatementswere discovered in a sample
of $35,500.
Audit Sampling SequenceAudit Sampling Sequence
Canada 48
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12. Generalize from the sample to the population.
Audit Sampling SequenceAudit Sampling Sequence
Project the sample misstatementresults to the population and consider
sampling error and sampling risk:sample misstatement total recorded point estimate total sample pop. value of misstatement x =
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12. Generalize from the sample to the population.
Project the sample misstatementresults to the population and consider
sampling error and sampling risk:
In the notes receivable example:
Audit Sampling SequenceAudit Sampling Sequence
sample misstatement total recorded point estimate total sample pop. value of misstatement x =
$1,380 $35,500
x $600,000 = $23,324 point estimate
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12. Generalize from the sample to the population.
Audit Sampling SequenceAudit Sampling Sequence
tolerable misstatement - point estimate= allowance for sampling error
$24,000 - $23,324 = $676
The auditor must also judgmentallyassess sampling error, considering severalfactors. The most important of these factorsis the difference between the point estimate
and tolerable misstatement.
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12. Generalize from the sample to the population.
The auditor must also judgmentallyassess sampling error, considering severalfactors. The most important of these factorsis the difference between the point estimate
and tolerable misstatement.
In the notes receivable example:
Audit Sampling SequenceAudit Sampling Sequence
tolerable misstatement - point estimate= allowance for sampling error
$24,000 - $23,324 = $676
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13. Analyze exceptions or misstatements.
evaluate the natureand cause of each
misstatement
Audit Sampling SequenceAudit Sampling Sequence
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13. Analyze the exceptions or misstatements.
evaluate the nature andcause of each misstatement
This evaluation may affect the auditor’s conclu-sions regarding financial
statements, client operations,and/or other areas.
Audit Sampling SequenceAudit Sampling Sequence
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14. Determine the acceptability of the population.
Decision Rule:Considering sampling error, if the pointestimate is less than the tolerable mis-statement, accept the conclusion thatthe book value is not misstated by a
material amount.
Audit Sampling SequenceAudit Sampling Sequence
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In the notes receivable example:
Decision Rule:Considering sampling error, if the pointestimate is less than the tolerable mis-statement, accept the conclusion thatthe book value is not misstated by a
material amount.
original point estimate estimate of point estimate incl. of misstatement sampling error sampling error + =
$23,324 + $1,500 = $24,824judgmentallydetermined
conclusion?
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$24,824>$24,000 tolerable misstatementThe notes receivable balance of $600,000 is not acceptable.
In the notes receivable example:
Decision Rule:Considering sampling error, if the pointestimate is less than the tolerable mis-statement, accept the conclusion thatthe book value is not misstated by a
material amount.
original point estimate estimate of point estimate incl. of misstatement sampling error sampling error + =
$23,324 + $1,500 = $24,824
conclusion?
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What are the What are the auditor’s auditor’s optionsoptions??
book valueis not
acceptable
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- take no action until tests of other audit areas are completed
What are the What are the auditor’s auditor’s optionsoptions??
book valueis not
acceptable
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- take no action until tests of other audit areas are completed- perform expanded audit tests in specific areas
What are the What are the auditor’s auditor’s optionsoptions??
book valueis not
acceptable
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- take no action until tests of other audit areas are completed- perform expanded audit tests in specific areas- increase sample size
What are the What are the auditor’s auditor’s optionsoptions??
book valueis not
acceptable
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- take no action until tests of other audit areas are completed- perform expanded audit tests in specific areas- increase sample size- request the account balance be adjusted
What are the What are the auditor’s auditor’s optionsoptions??
book valueis not
acceptable
11 - 122Copyright 2003 Pearson Education Canada Inc.
- take no action until tests of other audit areas are completed- perform expanded audit tests in specific areas- increase sample size- request the account balance be adjusted-request the client to correct the population
What are the What are the auditor’s auditor’s optionsoptions??
book valueis not
acceptable
11 - 123Copyright 2003 Pearson Education Canada Inc.
- take no action until tests of other audit areas are completed- perform expanded audit tests in specific areas- increase sample size- request the account balance be adjusted- request the client to correct the population- refuse to give an unqualified opinion
What are the What are the auditor’s auditor’s optionsoptions??
book valueis not
acceptable