When designing tests of control and tests of details, the auditor shall determine means of selecting items for testing that are effective in meeting the purpose of the audit procedure.
The auditor also needs to ensure that sufficient appropriate evidence is obtained through these procedures.
This course focuses on the different methods of selecting items, the advantages and disadvantages of each, when and how to use them, and the results obtained from the different methods.
This session also discusses the requirements of ISA 530 in terms of sampling and how to calculate and select sample sizes. We focus on the documentation requirements when sampling is used and how to ensure you have obtained sufficient appropriate evidence through your sample size.
The following will be covered during this session:
• What is meant by “Sufficient and Appropriate”?
• Different selection methods for items
o Selecting all items
o Specific items
o Audit sampling
• What is audit sampling
• Different types of sample selection methods
o Haphazard
o Random
o Judgemental
o Monetary unit sampling
o Systematic
• Determination of sample sizes
• Documentation necessary on audit file
• Selecting items for control tests
• Selecting items for substantive tests (detail tests).
• Projecting misstatements
