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    Steps in Selecting and Evaluating Statistical Test Controls

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    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.

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    - 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 ...

    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.