Evaluation of Sample Results

Question 1

What should be done once the audit procedures have been carried out on the sample?

Answer 1

Auditor should evaluate the sample results to determine whether they are satisfactory or whether further work is required

Question 2

Auditor consider when there are errors in the sample (nature)

Answer 2

The nature and cause of the error

Question 3

Auditor consider when there are errors in the sample (one-off)

Answer 3

Whether the error is a “one-off” error or a recurrent issue

Question 4

Auditor consider when there are errors in the sample (audit procedure)

Answer 4

Whether the error effects the purpose of the audit procedures

Question 5

Auditor consider when there are errors in the sample (other areas)

Answer 5

Whether the error affects other areas of the audit

Question 6

What is an anomaly?

Answer 6

A misstatement or deviation that is demonstrably not representative of misstatements or deviations in a population

Question 7

What is tolerable misstatement? (monetary amount)

Answer 7

A monetary amount set by the auditor in respect of which the auditor seeks to obtain an appropriate level of assurance that monetary amount set by auditor is not exceeded by actual misstatement in the population

Question 8

What is tolerable rate of deviation? (deviation internal control procedures)

Answer 8

A rate of deviation from prescribed internal control procedures set by the auditor of which auditor seeks to obtain an appropriate level of assurance that rate of deviation set by auditor is not exceeded by actual rate of deviation in the population