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Fourth PassAPPENDIX 10BStatistical Sampling Concepts for Tests of Controls and Tests of Balances In this appendix, you will find morespecific explanations of how to do statistical sampling in the
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How to fill out audit sampling - an
How to fill out audit sampling - an
01
Understand the objective of the audit sampling.
02
Define the population to be sampled.
03
Select a sampling method that is appropriate for the audit objective.
04
Determine the sample size based on the desired confidence level and tolerable error rate.
05
Randomly select the sample from the population.
06
Perform the audit procedures on the sample data.
07
Evaluate the results of the sample and extrapolate any findings to the entire population.
Who needs audit sampling - an?
01
Audit professionals who are conducting financial audits.
02
Companies that need to comply with regulatory requirements.
03
Organizations that want to assess the effectiveness of their internal controls.
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What is audit sampling?
Audit sampling is the application of an audit procedure to a representative part of a population to draw conclusions about the entire population.
Who is required to file audit sampling?
Entities that are subject to audits by certified public accountants or regulatory agencies are typically required to file audit sampling, particularly if they employ statistical sampling methods.
How to fill out audit sampling?
To fill out audit sampling, one must define the population, select a sample size, choose a sampling method, gather the sample data, and document the findings along with the methodology used.
What is the purpose of audit sampling?
The purpose of audit sampling is to obtain sufficient evidence that can be used to form an opinion about the financial statements or compliance with regulations without having to examine every item in the population.
What information must be reported on audit sampling?
The report on audit sampling should include the sampling method used, sample size, results of the sample, conclusions drawn, and any issues or anomalies found.
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