Chapter 17 – Audit Sampling for Tests of Details of Balances

Audit Sampling for Tests of Details of BalancesChapter 17©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 17 - 1Learning Objective 1Differentiate audit sampling fortests of details of balancesand for tests of controls andsubstantive tests of transactions.©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 17 - 2Tests of Details of Balancesand Controls, and SubstantiveTests of TransactionsBoth sampling and nonsamplingrisks are important for: Tests of controls Substantive tests of transactions Tests of details of balances©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 17 - 3Learning Objective 2Apply nonstatistical samplingto tests of details of balances.©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 17 - 4Nonstatistical SamplingThere are 14 steps required in auditsampling for tests of details of balances.These steps parallel the 14 steps usedfor sampling for tests of controls andsubstantive tests of transactions.There are a few differences becauseof the different objectives of the tests.©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 17 - 5Comparison of the 14 StepsAudit sampling for tests ofAudit sampling for tests controls and substantiveof details of balances tests of transactions1. State the objectives 1. State the objectivesof the audit test. of the audit test.2. Decide whether audit 2. Decide ...