Audit sampling Flashcards
1
Q
Audit sampling
A
Applying audit procedures to less than 100% of items
2
Q
Sampling risk
A
Risk that audit conclusions will not result in same conclusion if whole population were tested
3
Q
2 types of sampling risk
A
- Test of control sampling risk
2. Substantive testing sampling risk
4
Q
Non-sampling risk
A
- Human error
- Reliance on incorrect information from another party
5
Q
Ways to minimize non-sampling risk
A
- Proper planning and supervision
- Adherence to quality control standards
6
Q
5 steps for planning the sample
A
- Determine objectives of test
- Define the errors
- Identify population
- Specify tolerable error, expected error and required confidence level
- Decide on sample size
7
Q
3 ways to select sample size
A
- Random selection
- Systematic selection
- Haphazard selection
