58 paragraphs found
An example of when it is necessary to perform the procedure on a replacement item is when a voided cheque is selected while testing for evidence of payment authorisation. If the auditor is satisfied that the cheque has been properly voided such that it …
In analysing the deviations and misstatements identified, the auditor may observe that many have a common feature, for example, type of transaction, location, product line or period of time. In such circumstances, the auditor may decide to identify all …
The auditor is required to project misstatements for the population to obtain a broad view of the scale of misstatement but this projection may not be sufficient to determine an amount to be …
For tests of controls, an unexpectedly high sample deviation rate may lead to an increase in the assessed risk of material misstatement, unless further audit evidence substantiating the initial assessment is obtained. For tests of details, an …
Audit sampling (sampling) means the application of audit procedures to less than 100% of items within a population of audit relevance such that all sampling units have a chance of selection in order to provide the auditor with a reasonable basis on which …
Population means the entire set of data from which a sample is selected and about which the auditor wishes to draw conclusions. …
Sampling risk means the risk that the auditor’s conclusion based on a sample may be different from the conclusion if the entire population were subjected to the same audit procedure. Sampling risk can lead to two types of erroneous conclusions: In the …
Non-sampling risk means the risk that the auditor reaches an erroneous conclusion for any reason not related to sampling risk. (Ref: Para . A1 …
Anomaly means a misstatement or deviation that is demonstrably not representative of misstatements or deviations in a population. …
Sampling unit means the individual items constituting a population. (Ref: Para . A2 ) …