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.
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, including the documents used in Draftworx for sampling purposes.
By completing this practical course, delegates would be able to:
• Select items for testing the operating effectiveness of control activities.
• Select items for testing the detail of account balances and transactions.
• Conclude on the results of audit procedures from items selected.
• Be able to use the Draftworx documents to calculate a sample size and select the sample.
The course content includes the following:
• Different selection methods for items
o Selecting all items
o Specific items
o Audit sampling
• What is audit sampling
• Statistical vs non-statistical sampling
• Definition of population, error and sampling unit
o Value weighted selection
• Sample design, size and selection of items
• Different types of sample selection methods
o Monetary unit sampling
• Determination of sample sizes
• Selecting items for control tests
• Selecting items for substantive tests (detail tests).
• Projecting misstatements
• Evaluating results
• Using the Draftworx documents to calculate sample sizes and select items.
This course will be presented at an intermediate level, and all member of the engagement team in an audit or independent review will benefit from this training.
Delegates must bring their own computers with Draftworx already loaded. All software must be fully licensed. All other material and stationery will be provided.