Tests of Details

Question 1

What happens where sampling has been used to perform tests of details?

Answer 1

The auditor should project the monetary errors found in the sample to the population as a whjile and compare this to level of tolerable misstatement

Question 2

What happens where an error has been established as an anomaly?

Answer 2

It may be excluded when projecting sample errors to the population

Question 3

What if evaluation of sample results indicates that there may be significant issues, auditor may (management investigate)

Answer 3

Request management to investigate identified errors and the potential for further errors and make any necessary adjustments

Question 4

What if evaluation of sample results indicates that there may be significant issues, auditor may (audit procedures)

Answer 4

Modify the nature, timing and extent of further audit procedures

Question 5

What if evaluation of sample results indicates that there may be significant issues, auditor may (auditor’s report)

Answer 5

Consider the effect on the auditor’s report