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Please i need help in answering these auditing questions. thank you. Chapter 9- Audit Sampling How to evaluate the results of a sample What is
Please i need help in answering these auditing questions. thank you.
Chapter 9- Audit Sampling
- How to evaluate the results of a sample
- What is a tolerable rate/ tolerable misstatement
- How to calculate the audited value using (meanper-unit, difference estimation, and ratio methods)
- Attribute samples what are they used for, what are the key inputs to determine sample size
- Different methods used to pick samples from a population
- The difference between statistical and nonstatistical samples
- What is the risk of assessing control risk to high/low and the risk of incorrect acceptance/incorrect rejection
- What are some of the auditors concerns when picking a sample what can go wrong
- Relationship of tolerable rate/materiality, risk of assessing control risk too high/too low, population, expected deviations, etc. to sample size.
- Understand PPS sampling what are the steps to performing this sampling technique, understanding what a sampling interval is, and how it is calculated
- Why and when is PPS sampling the best method to use, what are some flaws and positives of PPS sampling
- Understand the definition of standard deviation
- Difference between CVS (classical variable sampling) and PPS
- Understand how to evaluate the results of a PPS sample (Tainting percentage, when projection makes sense, etc)
- Understanding when ratio estimation technique to evaluate a CVS sample is the best way to calculate differences/estimate population value.
- Understand what causes sample sizes to increase and decrease in CVS and PPS sampling
- Understand key terms such as tolerable misstatement, expected misstatement, recorded amount, audited amount.
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