Acc491 Wk 4 Dq Questions

*What are some of the varied types of exemplification methods that are useable to the attender? * How does the auditor decide which method to use? How will the different methods proceed the audit? The types of auditing haves are broken down into two different categories statistical and non-statistical sampling. The purpose of auditing trys are designed to give the auditor the results he or she seeks, without having to completely audit 100% of the items within the audit population.hither are some of the different types of auditing specimens broken out into the two categories statistical Sampling Methods Random Sampling Is an auditing method that basic on the wholey means that all sampling units in the auditing population will have an equal medical prognosis of being selected for evaluation, or that no bias would have played a role in what was selected. It is also important the samples that have been selected are non able to re-sampled again.Systematic Sampling Involves se lecting sampling units using fixed intervals mingled with selections, the first interval having a random start. This method is often referred to as interval sampling. This is because this method is where the auditor will take the number of sampling units in a population and divides this into the sample size to give a sampling interval. For example, if an auditor is auditing sales invoice where the sampling interval is 20, the auditor will determine a starting point for sampling and sample every 20th sales invoice thereafter.Non-Statistical Sampling Methods textbooklist-item textlist-item What is the importance of formation the population when performing audit procedures? How will this make a motion the sample size? How will incorrectly defining the population affect the sampling unit? The auditing population is the whole set of data for auditors to ravel in order to reach their final auditing conclusion. Auditors need to determine a population in which to examine samples from for specific auditing objectives he or she wishes to complete.For example, if an auditors stopping point was to test for overstatements of debtors, the auditing population could entail itemisation of debtors. However, if the auditor was to testing for overstatements of creditors, then(prenominal) the population would not be only be a listing of creditors, but, also require the auditor to look for subsequent disbursements, unpaid invoices, suppliers statements, preposterous receiving reports, or different auditable populations that would provide evidence of potential understatements to creditors.When the auditor is plan the auditing samples, the auditor should consider the specific audit objectives he or she wishes to fulfill, the reputation of the auditing population for which they wish to sample, as well as any other factors affecting the auditing samples size. The determination of an auditing samples size should require judgment of Assurance involve Tolerable and Expected Error (or Deviation Rate) Stratification Erroneously defining the auditing population mountain have an incredible affect on sample size as the auditor then has to choose a sample for conducting the audit.Auditors should select sample size in a way that the auditing sample can be anticipated to be a fair representative of the overall auditing population in respect of the uniqueness that is tested. If an auditing population has not been defined then the chance for errors increases the indistinctness of the results taken from the auditing sampling. Furthermore, if an auditing population itself has incorrectly been defined, the sampling unit will not give the anticipated results. These errors can formulate an incorrect conclusion by the auditor, there by defeating the initial purpose of the audit.