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Summary AUDIT SAMPLING FOR AUDIT 378
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- Stellenbosch University (SUN)
AUDIT SAMPLING FOR AUDIT 378
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Audit SamplingISA 530
Introduction:
- Audit Sampling = The performing of audit procedures on less than 100% of items in a
class (ie. A ‘representative sample’), but opinion is applicable to full 100%.
- Definitions = ISA 530 - pg2.
Risks of audit sampling:
- This is the risk that the auditor’s opinion, based on the sample, may differ if the
entire population were tested.
- The two types of sampling risk are:
o 1 - Risk that auditor will evaluate controls more effective than they are (or
that misstatement does not exist, when it actually does)
o 2 - Risk that auditor evaluates controls are not effective enough, when they
actually are (or that misstatement is absent, when it is actually present)
- NB! Non-sampling risk is the risk involved in an audit, which is NOT related to the
sampling methodology used; namely:
o The auditor interpreting the audit evidence incorrectly
o The auditor performing the incorrect audit procedures
Statistical or Non-statistical:
- Here, the auditor uses his professional judgement to decide which method provides
the most effective manner of obtaining sufficient, appropriate audit evidence (wrt
the relevant circumstances)
- Non-statistical methods lead to the use of the auditor’s professional judgement on
issues such as: 1) Sample size to be used; 2) evaluation of the results of audit
procedures; 3) etc
- Eg. TOC’s = Non-statistical approach (normally)
- Eg. SP’s = Statistical approach (normally)
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