BUS 426 Chapter Notes - Chapter 11: Non-Sampling Error, Simple Random Sample, Audit Risk
13 Dec 2016
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Selective examination of data used when: less than 100% of the items in the population under examination are being audited, each item (sampling unit) in the population could be selected as part of the sample. Use an appropriate method of selecting sample items in the population: nonsampling risk the auditor makes an incorrect conclusion due to the failure to recognize exceptions, and/or inappropriate or ineffective audit procedures. Audit sampling methods can be divided into two categories: statistical sampling. Applies mathematical rules, so that auditors can measure sampling risk in phase 1 and 3: nonstatistical sampling. Auditors use their professional judgement to select sample items that will provide the most useful information and reach their conclusions on the populations. Both involve three phases: planning plan the sample and determine sample size, performance select the sample and perform the tests, evaluation evaluate the results and conclude the acceptability of the population tested. Both sample selection fall under phase 2 (performance)
