Purchase Solution

Steps in Selecting and Evaluating Statistical Test Controls

Not what you're looking for?

Ask Custom Question

List the steps involved in selecting and evaluating a non statistical or a statistical sample for tests of controls. Identify the professional judgments that must be made associated with each step.

Purchase this Solution
Solution Summary

437 words; 2 references; steps in the selection and evaluation of a statistical or non statistical sample - includes professional judgments associated with each step.

Solution Preview

- The first step involves determining test objectives where the auditor estimates the rate of deviations from the controls in the population being studied. In this step, the auditor checks how the test objectives relate to the financial statement assertions.

- The second step is determining the procedures to meet the objectives of the company. In this step, the auditor assesses and evaluates individuals and at the same time, observes the way people perform their tasks. Determining procedures is a way of exercising professional judgment to provide evidence that the design and operation of internal controls are effectively designed.

- Third, the auditor makes a decision about the audit sampling technique by determining ...

Purchase this Solution
Free BrainMass Quizzes
Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Motivation

This tests some key elements of major motivation theories.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

View More Free Quizzes
Related BrainMass Solutions

  • Briefly describe three strategies for testing internal contr

    **List the steps involved in selecting and evaluating a non-statistical or a statistical sample for tests of controls. Identify the professional judgments that must be made associated with each step.

  • Selecting and Evaluating a Sample for Tests of Controls

    168416 Selecting and Evaluating a Sample for Tests of Controls List the steps involved in selecting and evaluating a non-statistical or a statistical sample for tests of controls.

  • Auditing: Steps to select/evaluate sampling for control test

    List the steps involved in selecting and evaluating a nonstatistical or a statistical sample for tests of controls: ? Determine the test objectives.

  • Auditing Processes and Procedures

    Because of the depth of details that can be revealed through substantive testing, "many auditors apply substantive testing in the form of statistical sampling to the test controls" (Hitzig, 2004).

  • Auditing and Assurance Services

    In the audit of sales, one of the major concerns is the effectiveness of the controls in making sure that all shipments are billed.You have decided to use the audit sampling in testing internal controls. a.

  • Assessing the Risk of Material Misstatement

    The steps in sampling for controls include planning, performance, evaluation, and documentation (www.buec.udel.edu).

  • Multi-choice audit concept questions

    Tests of controls. b. Substantive tests c. Preparation of financial statements. This is not a test. 12. There are two major audit sampling methods, statistical sampling and non-statistical sampling.

  • five step process for hypothesis testing

    Selecting random sample and computing an appropriate value: Another step is selecting a random sample and computing an appropriate value from sample data concerning the test statistic utilizing the relevant distribution (Hypothesis Testing, 2001).

  • Selecting the Appropriate T-test

    596618 Selecting the Appropriate T-test For this assignment, use data from W1 Assignment 2. Compute a t-test comparing males' and females' heights. You must determine which type of t-test to compute.

View More Related Solutions