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Book: Modern Auditing: Assurance Services and the Integrity of Financial Reporting (8th ed.)W. Boynton and R. JohnsonWiley, 2006Hoboken, NJ
Chapter 13: Learning Check 13-8 List the steps involved in selecting and evaluating a nonstatistical or a statistical sample for tests of controls. (are these right)1. Determine the test objectives. 2. Determine procedures to meet objectives. 3. Make a decision about the audit sampling technique. 4. Define the population and sampling unit. 5. Determine the sample size. 6. Select a representative sample. 7. Apply audit procedures. 8. Evaluate the sample results. 9. Document conclusions. Identify the professional judgments that must be made associated with each step.
Optional Information: Subject: auditing IAlready Tried: i think i have the first part, but not sure at all on the second part
HiCustomer
Good day!
Yes; you got the first part right. We may have different wordings but it means the same. I will follow yours.
1. Determine the test objectives.
Determine audit objectives and how the objectives of the test relate to financial statement assertions.
2. Determine procedures to meet objectives.
The determination of procedures is a matter of professional judgment that provides evidence about the effective design and operation of internal controls.
3. Make a decision about the audit sampling technique.
The choice of using statistical or nonstatistical sampling is a matter of professional judgment.
4. Define the population and sampling unit.
The population depends on the control being tested. In many cases, there may be several ways to identify different sampling units for the same control (e.g., each report or each item on a report).
5. Determine the sample size.
Sample size is a function of a variety of factors. The auditor uses professional judgment to make a decision about each judgment that influences sample size. If the auditor uses nonstatistical sampling the auditor also uses professional judgment to determine the sample size used.
6. Select a representative sample.
The auditor uses professional judgment in determining the technique used to select a representative sample from the population.
7. Apply audit procedures.
In step 2 the auditor used professional judgment to determine the procedures to be performed. Now the auditor uses judgment to apply those procedures to each sampling unit. Judgment is necessary to determine if evidence supports a control deviation or whether the control functioned effectively.
8. Evaluate the sample results.
The auditor uses professional judgment to sum the sample results and project the sample results on the population, particularly in a nonstatistical sample.
9. Document conclusions.
Professional judgment is an integral part of documenting the audit conclusions about effective operation of a control based on sample results.
I do hope this could help you.
Thanks!
Experience: BS Accounting
Do I need to change the wording in your answers? I only have to do that if you used the answer guide to help me. I am very appreciative for you help and hope to get more help in the next week. I will wait on your answer. thanks again
Thank you for the accept and feedback. :)
I am using an answer key, so I guess you may opt to change the wording if necessary.
Again, thank you.
I just posted another question, maybe you can help me.
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