Page 118 - DCOM509_ADVANCED_AUDITING

Unit 7: Audit Sampling

Self Assessment Notes

Fill in the blanks:
12. Statistical sampling allows the user to measure the …………. associated with the procedure.
13. ……………………… usually require more training for auditors and more time to apply.

14. The decision to apply a statistical or non-statistical sampling application to a particular
audit test is a matter of…………………………..

7.5 Designing a Sampling Application

There are several steps in designing a sampling application for an audit or investigation. The
steps are discussed in detail in the next pages.
1. Define the objectives of the test.
2. Determine the type of test to be performed:

(a) Variables Sampling
(b) Attribute Sampling
3. Define the deviation conditions.
4. Define the population:

(a) Decide what period will be covered by the test
(b) Define the sampling unit
(c) Consider the completeness of the population
(d) Consider how the error rate will be extrapolated

5. Determine the method of selecting the sample:
(a) Random-Number sampling
(b) Systematic sampling
(c) Other sampling

6. Determine the sample size:
(a) Variables Sampling
(b) Attribute Sampling
7. Perform the sample:

(a) Compare the sample to the population before completing the sample
8. Evaluate the sample results:
(a) Interpret results
(b) Extrapolate results

(c) Consider the qualitative aspects of the deviations
(d) Reaching an overall conclusion about the population
9. Document the sampling procedure.

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