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Basic Concepts of Audit Sampling AU 350

This document defines audit sampling and discusses different types of sampling approaches used in auditing. It describes audit sampling as applying audit procedures to less than 100% of an account balance or class of transactions to assess characteristics. There are two components of audit risk addressed: control risk and testing risk. Non-statistical and statistical sampling both require consideration in planning, implementing, and evaluating results. Attribute sampling models include fixed sample size to estimate a quality percentage, stop-or-go to stop testing early, and discovery for very low error rates.

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jogedan duabelas
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24 views

Basic Concepts of Audit Sampling AU 350

This document defines audit sampling and discusses different types of sampling approaches used in auditing. It describes audit sampling as applying audit procedures to less than 100% of an account balance or class of transactions to assess characteristics. There are two components of audit risk addressed: control risk and testing risk. Non-statistical and statistical sampling both require consideration in planning, implementing, and evaluating results. Attribute sampling models include fixed sample size to estimate a quality percentage, stop-or-go to stop testing early, and discovery for very low error rates.

Uploaded by

jogedan duabelas
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Basic Concepts of Audit Sampling AU 350.

01 defines audit sampling as the application of audit


procedures to the elements of an account balance or class of transactions that are less than
100% for the purpose of assessing some characteristics of that account balance or class of
transactions. The uncertainty inherent in an audit is often referred to as audit risk.
Sampling audit applies two components of audit risk,
1. namely control risk
Control risk is the risk that internal control will not detect or avoid material misstatements in
financial statement assertions.
2. detailed risk testing.
Tests of details risk is the risk that a material misstatement will not be uncovered by the
auditor's tests of details.
In carrying out audit tests in accordance with auditing standards, the auditor may use non-
statistical sampling, statistical sampling, or both. Both types of sampling require consideration
in planning, implementing and evaluating the results.
The steps in a non-statistical sampling plan for tests of controls are as follows:
a. Determine audit objectives and procedures for meeting those objectives. b. Determine the
population and sampling unit.
b. Specify the controls desired and evidence that those controls are effective or ineffective.
c. Use professional judgment to determine sample size.
d. Use professional judgment to determine the sample selection method.
e. Apply audit procedures to tests of controls.
g.Evaluate the sample results.
Statistical sampling is divided into two: attribute sampling and variable sampling.
Attribute sampling, also known as proportional sampling, is mainly used to test the
effectiveness of internal controls (in testing controls).
Variable sampling is used mainly to test the rupiah value stated in the account (in substantive
testing).
Statistical sampling benefits the auditor in:
a. Efficient sample design.
b. Measure the adequacy of the evidence obtained.
c. Evaluate sample results.
The steps in the statistical sampling plan for the test of controls are as follows:
a. Define audit objectives.
b. Determine the population and sampling unit.
c. Specifies the desired attributes.
d. Determine sample size.
e. Determine the sample selection method.
f. Carry out the sampling plan.
g. Evaluate sample results.

Attribute Sampling Models Sampling statistics are divided into two, namely attribute sampling
and variable sampling.
Attribute sampling is used in testing controls and aims to estimate the level of deviation from
predetermined controls in a population, while the variable sampling is used for substantive
testing and aims to estimate the total amount of rupiah in a population or the amount of rupiah
error in a population
Attribute sampling consists of three models
1.Fixed-sample-size attribute sampling Intended to estimate the percentage of occurrence of a
certain quality in a population
2. Stop-or-go sampling Stop-or-go sampling.
This model can prevent the auditor from taking too many samples, namely by stopping testing
as early as possible.
3. Discovery Sampling This model is appropriate if the estimated error rate in the population is
very low (close to zero).

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