BU477 Chapter Notes - Chapter 11: Internal Control, Simple Random Sample, Sampling Error
Document Summary
Less than 100% of the items in the population under examination are being audited and: 2. Each item (descried as a sampling unit) in the population could be selected as part of the sample. Inspect documents (control and substantive testing: re-perform calculations (control and substantive, send out confirmations (substantive tests of balances, test fixed asset additions (substantive tests of balances, test counts at an inventory observation (substantive tests of balances) Population: a set of accounts or transactions which the auditor wishes to draw a conclusion. Representative sample: a sample with the same characteristics as those of the population, ex. selected 100 samples with 3% errors therefore highly representative. Exception rate: % of items in a population that includes exceptions in prescribed controls or monetary correctness. Method of controlling sampling risk: 1. Use an appropriate method of selecting sample items in the population.
