1. Explain the process and benefits of audit sampling.
2.Assess risks inherent to selected transaction cycles.
1. Explain the process and benefits of audit sampling
The process of audit sampling begins with the preparing the audit testing plan. For this we need to identify the population to be tested and clearly define what an exception is. The next part is to determine the sample size to be used. In addition we have to select the method of selecting the items that are to be tested. Here we can chose systematic selection or random number selection. At this stage we decide which items will be selected. Only these items will be selected.
The auditor now needs to perform the audit procedures only on those items that have been selected. If any exceptions are found these are earmarked for further assessment. After the audit procedures are performed the auditor evaluates the degree and seriousness of the exceptions found. The nature of these exceptions and their existence in the population should also be evaluated. These exceptions should be judged using quantitative approach as well as qualitative ...
This posting gives you an in-depth insight into benefits of audit sampling