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Unit 2. Audit Sampling, Note on Audit Sampling - Coggle Diagram
Unit 2. Audit Sampling
Need?
⬆Business Complexity
⬆ Transaction Volumes
Auditor's Limited Time
Factor Affecting Design of Sample
Specific Audit Objective
Population
Stratification
Sample Size
Sampling Risk
Tolerable Risk
Expected Risk
Purpose
Obtain evidence
Reduce over-auditing
Basis for conclusions
Test validity & accuracy
Detect errors/fraud
Fulfill audit objective
Compliance with standards
Investigation tool
Sampling Methods:
Simple Random
Systematic Random
Stratified
Cluster
Multi-Stage
Block
Value-Based
Haphazard
Risks of Sampling
wrong Sample
Large Enough
sample result ≠ Population Result
Representative
Note on Audit Sampling