Statistical vs non-statistical sampling terms used in sample planning terms used in evaluating results accounts receivable stratification. Chapter 9 – homework objectively evaluating sample results (b) decisions requiring professional judgment in performing statistical tests of controls include . Define audit sampling identify the type of audit procedures that do not involve audit sampling distinguish between sampling risk and non-sampling risk discuss the different types of audit sampling design apply statistical and non-statistical sampling methods to tests of controls and substantive tests.
Yes no no yes select the sample yes yes no no evaluate results no no yes yes unit sampling of accounts receivable, the interval is determined by: a consulting . 2 sample size determination in auditing accounts receivable using a zeroinflated poisson model abstract in the. Clarified auditing standards: audit sampling (au-c section 530) – part 2 confirmation of 70 percent to 80 percent of accounts receivable balances may be . Generally, the decision to apply a statistical or non-statistical sampling application to a particular audit test is a matter of cost effectiveness statistical applications usually require more training for auditors and more time to apply the department utilizes non-statistical random sampling procedures.
Sample size for non-statistical sampling is left entirely to the auditor’s professional judgement the factors considered when determining sample size for tests of controls using a non-statistical approach are the same as those considered for attributes sampling. Study 69 chapter 9 flashcards statistical rather than non statistical sampling, a disadvantage is that: final planning of the accounts receivable program a . The auditors are using mean-per-unit sampling to evaluate the reasonableness of the book value of the accounts receivable of smith, inc smith has 10,000 receivable accounts with a total book value of $800,000.
Evaluating the results of audit sampling14 theauditorshouldevaluate receivable)ormonetaryunits tolerable misstatement (ref: par 05). Auditors use both statistical and non-statistical and evaluate sample results example sampling units for confirming accounts receivable could be the . Audit exam 2: chapter 9 will have to use discovery sampling techniques to evaluate the results during the final planning of the accounts receivable program .
10 “statistical sampling” means any approach to sampling that has the following characteristics: (a) random selection of a sample and (b) use of probability theory to evaluate sample results, including measurement of sampling risk a sampling approach that does not have characteristics (a) and (b) is considered non-statistical sampling 11. Evaluating a sample this guideline applies to non-statistical sampling the primary difference between non-statistical and statistical sampling is that non-statistical sampling relies more on the auditor’s judgment while statistical sampling relies on quantitative measurements to determine the sampling risk. Non-statistical sampling guidelines appendix 5 sampling plan for non-stratified sample audit 25 there are two general approaches to sampling: non-statistical .
You are planning to use non-statistical sampling to evaluate the results of accounts receivable confirmation for meridian company you have already performed tests of controls for sales, sales returns and allowances, and cash receipts, and they are considered excellent. Statistical & non-statistical sampling evaluating the sampling plan 1 population size of accounts receivable n 4,000 accounts. The purpose of this statement of auditing standards (sas) is to establish standards and provide guidance on the design and selection of an audit sample and the evaluation of the sample results this sas applies equally to both statistical and non-statistical sampling methods.
Chapter 17, pp 594: problems 17-27 17-27 (objective 17-2) you are planning to use nonstatistical sampling to evaluate the results of accounts receivable confirmation for the meridian company you have already performed tests of controls for sales, sales returns and allowances, and cash receipts, and they are considered excellent. – the use of probability theory to evaluate sample results, including measurement of sampling risk a sampling approach that does not have above characteristics is considered non-statistical sampling. When sampling from the population of accounts receivable for certain objectives, the auditor might sample only active accounts with balances2 to be random, even item in the population must have an equal change of being selected for inclusion in the sample3.