Question

Write a 175- to 350-word summary.

Research a recent article on sampling as it relates to financial statement auditing.

Apply what you learn to your future accounting job.

*****PLEASE INCLUDE ARTICLE AND REFERENCES USED*****

Answer 1

Audit sampling is the application of audit procedures to less than 100% of total population and all the items in the population have the same chance to be selected. This is to ensure that the items that selected are represent the total population which enable auditors to draw their conclusion and express their opinion based on their predetermine objective.

Audit sampling is really important because it isn’t only help auditors to gather the sufficient and appropriate audit’s evidence to draw the audit’s opinion, but also play the very important part on the audit’s works’ efficiency and effectiveness. That mean auditor is not require to check 100% of object or items to let them express their opinion.

They only perform their review and verification on the selected items and then express their opinion on the entire population. In general, the audit sampling can be performed in two different types. First, statistic and non-statistical sampling. These two types of sampling contain many others methods which will be discussed detail in this article.

Audit sampling is very important part of audit works. No mater it is financial audit, internal audit and others kind of audit. Audit sampling still need to be used by auditors. The following are the purposes and objectives of audit sampling:

• To gathers audit evidences in order to concluded audit opinion.
• To reduce the works yet audit yet still help audit to reach its conclusion.
• To provide the basis for auditor to conclusion audit opinion.
• To detect any kind of error or fraud that could happen in the company as well as financial statements.
• To prove auditors have done their jobs base on the required auditing standards.

Two Types of Audit Sampling:

Statistic audit sampling:

Statistic audit sampling is the sampling approach where auditor use random sampling to select the items from the total population use the probabilities technique to measure the result of testing and make conclusion. Using statistical sampling is very important to help auditor to manage and control audit’s risk. This because statistic, we use data and probabilities to select the items from the total population and those data are not prejudge and unbiased by auditors.

Non statistic audit sampling:

Non statistical sampling by the ways is different from statistic. Based from the theory from IFRS, any method that not mean the criteria of statistic is non statistic. That mean you have to be very clear and understand well about statistic audit sampling. There are two importance thinks that you can use to identify whether the sampling is systematic or not.