User Account

All Pages

Discuss the appropriate places to use audit sampling

Assignment Help Auditing
Reference no: EM131120271

Auditing and Regulation

Sampling is an important testing method in any audit for collecting evidence prior to complete the audit All audits involve sampling because the auditor cannot examine 100% of the transactions during a period; yet the auditor must reach conclusions about the accuracy of the underlying populations that make up an account balance.

The objective of sampling is to estimate the amount of misstatement in an underlying population such as an account balance. But, sampling always contains some risk, i.e. the auditor might not look at enough items, or the sample might not be representative.

Thus, auditors must consider how to take samples that minimize the likelihood that we will reach an incorrect conclusion about what we are testing. Statistically based sampling allows us to control the risk that we might reach an incorrect conclusion.

Discussion the following:

1. Discuss the appropriate places to use audit sampling.
2. Discuss and assess the risks associated with all sampling procedures.
3. Discuss the differences between non-statistical and statistical sampling as a basis to determine the appropriate sampling methodology.
4. Describe how attribute estimation sampling can be used to test controls
5. Discuss the steps involved in using sampling for substantive tests of account balance.

In your own words, post a substantive response to the Discussion Board question(s) and comment on other postings. Your response should address the DB question(s) and move the conversation forward. You will be graded on the quality of your postings, including mastery of the concept as well as critical thinking. If asked for your opinion, do not simply state that it is a good or bad idea; elaborate on your reasons and argument. Include enough detail to substantiate your thinking as well as your position on the questions or comments.

Reference no: EM131120271

Questions Cloud

Project management in europe differs from the us : How the practice of project management in Europe differs from the US - Introduction and importance
Evidence from a murder scene : A crime scene tech has collected fiber evidence from a murder scene.  Fibers were found on the victim's shirt and pants and placed in a plastic evidence bag. He notices a sheet next to the victim.  The tech grabs it and puts it in its own separate..
Explain why you think customer service is important : Explain why you think customer service is important.
What is the rhetorical general and specific purpose : What is the rhetorical general and specific purpose of John F. Kennedy's inaugural address? What is the claim and identify the reasoning to support the claim?
Discuss the appropriate places to use audit sampling : Discuss the appropriate places to use audit sampling. Discuss and assess the risks associated with all sampling procedures. Discuss the differences between non-statistical and statistical sampling as a basis to determine the appropriate sampling me..
Explain fearlessness theory and stimulation-seeking theory : Explain fearlessness theory and stimulation-seeking theory, as discussed by Raine. What might Reiman have to say about such explanations for violent behavior?
Discuss how you anticipate accepting your own mortality : After reading your text on the dying process, discuss how you anticipate accepting your own mortality
Calculate the curvature of the helix : Calculate the curvature of the helix. Does there exist a point of maximum or minimum curvature? If so, where? Find a parameterization that covers the portion of the cylinder with x
Argument that conforms to one of valid argument : Create an argument that conforms to one of the valid argument forms discussed as a: modus ponens, modus tollens, hypothetical syllogism, disjunctive syllogism, or constructive dilemma. Use capital letters to make substitution instances of your arg..

Reviews

Write a Review

Auditing Questions & Answers

  Provide internal audit service

Sole proprietor in pulic practice, plans to establish a separate department that will provide internal audit service to his audit clients.

  Auditing-purchase department frauds

How can a purchasing manager use his/her position to defraud the company? What can be done to prevent it? Where could an auditor look to find evidence of losses on purchase commitments and unrecorded liabilities to vendors?

  Principles governing international accounting in usa

International accounting is impacted by a wide range of factors, including accounting diversity, global accounting standards, multinational companies, and the global economy.

  Show the components of teamschedule

Show the components of TeamSchedule and how does the use of TeamSchedule and TeamTEC improve the monitoring and reporting of resources?

  Compare workplace environment at larger versus smaller audit

Compare and contrast the workplace environments at larger versus smaller audit firms. Explain which type of environment you think would best fit your needs.

  Depending on the results of their tests of control the

depending on the results of their tests of control the auditors may restrict substitutive procedures.bulldiscuss and

  Identify the key audit deficiencies related to accounts

Identify the key audit deficiencies related to accounts, disclosures, and assertions in the revenue cycle. For each identified deficiency, indicate the appropriate action that should have been taken by the auditor.

  How might dells external auditor respond to concerns

How might Dell's external auditor respond to concerns about the quality of governance at Dell? Given the SEC settlement, should Dell's board have an independent chair?

  What entry would be made when the wages are paid on saturday

should be developed and enforced in comparison with how the principles are now developed? What issues do you see with the way the current system handles this process?

  Explain important reason for performing analytical procedure

Discuss the conclusions that you can draw about 21st Century Accessories Pty Ltd financial position; and identify potential audit risks to be investigated further. Identify and explain the most important reasons for performing analytical procedures.

  You are preparing an end-of-year audit consider that the

you are preparing an end-of-year audit. consider that the terms of trade between a buyer and a seller are free on board

  Question on notes receivable

On July 1, 2007, Gale Sondergaard Company sold special-order merchandise on credit and received in return an interest-bearing note receivable from the customer. Sondergaard will receive interest at the prevailing rate for a note of this type. Both..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd