In this chapter, students will be able to understand: define audit sampling and its objective and describe the requirements that apply to all audit samples - statistical and non-statistical, identify the various means of gathering audit evidence, identify factors influencing the determination of sample size. | Chapter 11 Audit Sampling 11- Copyright 2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Definition and Features Audit sampling: the application of an audit procedure to less than 100 per cent of the items within a population to obtain audit evidence about particular characteristics of the population. Ref.: AUS 514/ASA 530 (ISA 530). Learning Objective 1: 11- Copyright 2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Importance of audit sampling Audit sampling is important because it provides information on: How many items to examine Which items to select How sample results are evaluated and extrapolated to the population 11- Copyright 2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Sampling risk defined Sampling risk: the probability that the auditor has reached an incorrect conclusion because audit sampling was used rather than 100 per cent examination (. correctly chosen sample was not representative of the population). 11- Copyright 2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Non-sampling risk defined Non-sampling risk: arises from factors other than sample size that cause an auditor to reach an incorrect conclusion, such as the possiblility that: The the auditor will fail to recognise misstatements included in examined items; The auditor will therefore apply a procedure that is not effective in achieving a specific objective. 11- Copyright 2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger | Chapter 11 Audit Sampling 11- Copyright 2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Definition and Features Audit sampling: the application of an audit procedure to less than 100 per cent of the items within a population to obtain audit evidence about particular characteristics of the population. Ref.: AUS 514/ASA 530 (ISA 530). Learning Objective 1: 11- Copyright 2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Importance of audit sampling Audit sampling is important because it provides information on: How many items to examine Which items to select How sample results are evaluated and extrapolated to the population 11- Copyright 2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e .
