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Warren Boyds Auditing Procedures Relating to Tests of Control

7. Warren Boyd, a beginning staff auditor, believes that audit sampling applies not only to tests of controls but may be used with all auditing procedures relating to tests of controls. Is he correct? Explain

9. Explain a situation where the concepts of audit sampling do not apply to tests of controls

10. Explain several situations where the concepts of audit sampling do not apply to substantive tests

BOOK: MODERN AUDITING 8TH EDIDION

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AUDITING
7. Warren Boyd, a beginning staff auditor, believes that audit sampling applies not only to tests of controls but may be used with all auditing procedures relating to tests of controls. Is he correct? Explain

Warren Boyd is correct in his belief that audit sampling may be used with all auditing procedures relating to tests of controls. USG.edu references that, "Audit sampling may be used to test less than 100 percent of a population. In sampling, the auditor accepts the risk that some or all errors will not be found and the conclusions drawn may be wrong. The type of sampling used and the number of items selected should be based on the auditors understanding of the relative risks and exposures of the areas audited."
Reference: http://www.usg.edu/fiscal_affairs/bpm_acct/bpm-sect16.pdf

PCAOB references that, "Audit sampling is defined as the application of an audit procedure to less than 100 percent of the items within an account balance or class of transactions for the ...

Solution Summary

Over 1000 words discuss whether audit sampling can be used with all procedures or simply tests of controls, and when not even for the latter. Reference links included.

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