Chapter 11: Evidence and Sampling

Question 1

What are some types of substantive procedures?

Answer 1

1) Inspection of documents
2) Inquiry
3) External confirmation
4) Recalculation
5) Reperformance
6) Analytic procedures

Question 2

What are the 2 types of computer assisted audit techniques?

Answer 2

1) TEST DATA- Audit data put into clients system.

2) AUDIT SOFTWARE- Client data is put into the auditors system

Question 3

What is audit data analysis?

Answer 3

Use of IT to analyse bug data. e.g. sensitivity analysis, transaction analysis

Question 4

What are the 3 statistical sampling methods?

Answer 4

1) Random samling
2) Systematic sampling
3) Money-unit sampling

Question 5

What are the 2 non-statistical sampling methods?

Answer 5

1) Haphazard selection- auditor picks a sample they think is representative
2) Sequence or block sampling- e.g. March’s invoices