Audit Sampling Flashcards
When to use
- 100% examination
- audit sampling
100% examination
- used in ST only
- repetitive nature of calculation
- small number of large amounts
audit sampling
- used in both TOC and ST
- should have audit trail
From my sample, I concluded that the control risk is low. However, in the population, the control risk is high. What does it sacrifice, efficiency or effectiveness?
Sample
- CR ↓, DR ↑, ST ↓
- nag over reliance ka sa sample na mali→ effectiveness (X opinion)
Beta Risk = Blind
BOAT → Beta, Over Reliance, Incorrect Acceptance, Effectiveness
I concluded that the sample is misstated. However, the population is actually not misstated. What does it sacrifice, efficiency or effectiveness?
Sample
- misstated, ↑ST
- nag under reliance ka sa sample na tama → efficiency
Alpha Risk = Alarmist
ARUI → Alpha, Incorrect Rejection, Under Reliance, Efficiency
Which is more important? Alpha Risk or Beta Risk?
Beta Risk
3 Ways to Control Sampling Risk
- appropriate sampling method
- appropriate sample size
- projection
Haphazard Method is one without structure, thus will result to bias. True or False?
False
- without structure, but still without bias
What is the least desirable sampling method?
Block / Cluster
Discovery or Stop or Go
- 1 deviation = ↑ CR
Discovery
Stop or Go
- 1 deviation = stop or go
- auditor expects few errors
Tolerable Deviation / Misstatement has an inverse relationship with sample size. True or False?
Acceptable Sampling Risk has an inverse relationship with sample size. True or False?
Expected Deviation / Misstatement has an inverse relationship with sample size. True or False?
- True
- True
- False (Direct)
VOIDED / CANCELLED DOCUMENT
- Proper→ Replace
- ✗ → Deviation
MISSING DOCUMENT
- Alternative Procedure → Perform
- ✗ → Deviation
ANOMALOUS
- Isolated → Replace
Yes
Sample Deviation Rate + Acceptable Sampling Risk = 30%
Tolerable Deviation Rate = 40%
What will be the control risk?
since ↓ vs TDR, ↓ CR
