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Sampling is an important method for determining the extent of testing controls, testing compliance, and tests of substantive details. It allows the auditor to apply procedures to less than 100% of the population yet extend results to project likely conclusions about the entire population. This module will describe the proper process for both attribute testing and variable sampling in financial statement and compliance audits.

Major Topics:

  • Types of sampling and sampling risk
  • Differentiating statistical and nonstatistical sampling approaches
  • Attribute testing for tests of controls and compliance
  • Variables sampling for substantive audit assurance when performing tests of details
  • Determining sample sizes in a compliance audit in conformance with Uniform Guidance

 

Learning Objectives

  • Discover and discuss generally accepted audit requirements related to sampling applications.
  • Recognize and differentiate attribute testing for tests of controls or compliance from sampling for substantive assurance in tests of details.
  • Explore and explain special considerations related to testing in compliance audits performed in accordance with Uniform Guidance.
  • Identify common sampling-related audit deficiencies.
Last updated/reviewed: June 25, 2021

Included In Certifications

This course is included in the following Certification Programs:

13 CoursesAudit Training Level 2 - Experienced Staff

  1. Fraud Risk - Complying with Minimum Audit Requirements
  2. Best Practices for Identifying and Evaluating Audit Risk - Linking Risk to the Detailed Audit Plan
  3. Testing Internal Controls - Exploring Strategies for Verifying Operating Effectiveness
  4. Inquiry and Research - Improving Critical Audit Skills
  5. Auditing Investments - Understanding Risks and Procedures for the Most Common Investments
  6. Auditing Accounts Receivable - Focusing Procedures for Testing Existence and Valuation
  7. Auditing Liabilities, Including Long-Term Debt - Addressing the Risks of Completeness, Classification, and Disclosure
  8. Substantive Analytic Procedures - Strengthening Evidence to Satisfy Audit Objectives
  9. Sampling - Avoiding Common Mistakes on Financial Statement and Compliance Audits
  10. Desired Traits of a Star Performer - Visualizing How to Become an Exceptional Staff Auditor
  11. Professional Requirements for Assurance Providers, Including Independence - Understanding Critical Code of Professional Conduct Concepts
  12. Accounting Update - Hot Topics for Preparing Current Period Financial Statements
  13. Auditing & Attest Update - Hot Topics for Current Period Audits and Other Attest Services

Prerequisites

Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.
Designed For: Accountants responsible for applying sampling methods on a financial statement or compliance audits.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  1:18Learning Objectives for Sampling
  14:38Introduction
  14:45Attribute Sampling
  13:29Attribute Sampling Cont'd
  14:18Variables Sampling
  10:18Case Study-Documenting the Sample Size and Results
  9:53Evaluating Results-Substantive Testing
  12:48Compliance Auditing
  10:21Compliance Auditing Cont'd
CONTINUOUS PLAY
  1:41:48Sampling - Avoiding Common Mistakes on Financial Statement and Compliance Audits
SUPPORTING MATERIAL
  PDFSlides: Sampling - Avoiding Common Mistakes on Financial Statement and Compliance Audits
  PDFSampling - Avoiding Common Mistakes on Financial Statement and Compliance Audits Glossary/ Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM