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Selecting The Sample: Ca Cu Ating

This document describes the steps for selecting a sample from a population and calculating the projected error from that sample. It involves listing the population items in order, assigning each a cumulative amount range based on value, and selecting items where the sampling interval falls in the range. To project the error, items in the sample with misstatements are identified and errors over the interval added directly, while smaller errors require calculating a tainting factor to determine the projected impact.

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Hazem El Sayed
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12 views

Selecting The Sample: Ca Cu Ating

This document describes the steps for selecting a sample from a population and calculating the projected error from that sample. It involves listing the population items in order, assigning each a cumulative amount range based on value, and selecting items where the sampling interval falls in the range. To project the error, items in the sample with misstatements are identified and errors over the interval added directly, while smaller errors require calculating a tainting factor to determine the projected impact.

Uploaded by

Hazem El Sayed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as RTF, PDF, TXT or read online on Scribd
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Selecting the Sample

1) List items in population in logical sequence


2) Based on the amount of an item and the total amounts of all previous items, each item will
represent a cumulative amount I
3) Assign each item a range of values
·1 The lower end of the range will be the previous item's cumulative amount
·2 The upper end of the range will be the item's cumulative amount
4) Select the items within the population where a multiple of the sampling interval is included in
the range

5)
Focus on
Module 5 246
Audit Sampling
Ca~cu~ating the Projected Error
6) Determine items ill sample containing misstatement
7) If item has dollar amount ~ sampling interval, misstatement is added to projected error
8) If item has dollar amount < sampling interval, effect of misstatement on projected error must
be calculated & added to the projected error
Calculate a tainting factor = Amount of misstatement + Dollar amount of item
·3 Projected error = Tainting factor x Sampling interval

Focus on
Audit Sampling - Module 5 247

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