BU477 Lecture Notes - Lecture 18: Non-Sampling Error
Document Summary
Audit sampling the selection of data used when it is less than 100% of the items in the population and also each item in the population has a chance of being selected. Representative sampling a sample with the same characteristics as those of the population, my sample has to look just like the population. Sampling risk risk that the auditor reaches an inappropriate conclusion because the sample is not representative of the population. Non-sampling risk auditor makes an incorrect conclusion due to (1) the failure to recognize exceptions, and/or (2) inappropriate or ineffective audit procedures. Exception rate - % of items in a population that includes exceptions in prescribed controls or monetary correctness. Deviation rate rate that the control is not working. Two ways of controlling sampling risk: 1. ) Use an appropriate method for selecting sample items in the population.
