Description

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