369 paragraphs found
Evidence of the operating effectiveness of a control subsequent to period end, for a control which did not operate during the period as it was not triggered, may be used in combination with evidence that the circumstances necessary to trigger the control …
In some circumstances, it may be necessary to obtain evidence supporting the effective operation of indirect controls. Controls over the accuracy of the information in exception reports (for example, the general IT controls) are described as “indirect” …
The means of selecting items for testing available to the assurance practitioner are: Selecting all items (100% examination): This may be appropriate for testing controls that are applied infrequently, for example, quarterly, or when evidence regarding …
While selective examination of specific items will often be an efficient means of obtaining evidence, it does not constitute sampling. The results of procedures applied to items selected in this way cannot be projected to the entire population; …
When designing a controls sample for testing operating effectiveness of controls, the assurance practitioner considers the specific purpose to be achieved and the combination of assurance procedures that is likely to best achieve that purpose, including …
In considering the characteristics of a population, the assurance practitioner makes an assessment of the expected rate of deviation based on the assurance practitioner’s understanding of the relevant controls or on the examination of a small number of …
With statistical sampling, sample items are selected in a way that each sampling unit has a known probability of being selected. With non-statistical sampling, judgement is used to select sample items. Because the purpose of sampling is to provide a …
Efficiency may be improved if the assurance practitioner stratifies a population by dividing it into discrete sub-populations which have an identifying characteristic. The objective of stratification is to reduce the variability of items within each …
Auditing Standard ASA 530 Audit Sampling can be used as further guidance on sampling and sample selection methods. …
The deviation rate for the sample of controls tested is also the projected deviation rate for the whole population. The closer the projected deviation rate for a control not operating effectively is to the tolerable rate of deviation, the more likely …