ADMS 4515 Lecture Notes - Lecture 7: Application Software
8 Mar 2018
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Ia process = planning, execution, reporting and evaluation. Timing = when tests are done and period of time. Need professional skepticism + reasonable assurance when gathering persuasive evidence. ~ larger sample sizes and direct evidence are desirable. Low reliability (by organization) written policy statements, time cards, receiving reports. Medium reliability (third party) vendor invoices, bank statements, purchases. High reliability (prepared by ia) process maps, inventory test counts, confirmations. Stuff like audit software, test data, application software, tracing and mapping to help ia test control activities built into technology. Working papers: required to record collected evidence, provide support, evaluation of ia program. Sample because it takes too long to look at everything. Non-statistical better for the auditor to use subjective judgement to influence sample. Risks o(cid:374) the auditor"s experie(cid:374)ce a(cid:374)d judge(cid:373)e(cid:374)t. Bias = selected a sample or used subjective judgement used for the selection criteria. Sample risk = conclusions based off a sample are not 100% representative of the population.
