ISA 530 – NBC Institute

AAA – Nov 2022 – L3 – SB – Q4 – Audit Planning and Strategy

Discuss audit sampling rationale, key decisions, advantages, sampling methods, and auditor actions in sample testing.

Question

wo accountancy students from a University have been asked to write a term paper on “the reasons why external auditors resort to sampling when conducting the audit of a large entity.” The students are of the opinion that they do not understand why this should be the case, if auditors focus on their work.

They believe statistical sampling is not always good for auditing, especially when a population consists of a small number of large items. It may be appropriate to apply audit tests to the entire population as all the items in the population may not share common characteristics. Added to this, they do not agree that samples could be representative of the population and also reflect the characteristics of the population. There is therefore the risk that the auditors may not reach a correct decision as against when the entire population is tested.

Furthermore, they said that they were confused on how the auditors will work on samples in such a way that all items in the population will be given equal chance of being selected and the key decisions that need to be made for effective sample design.

As an ICAN Professional examination candidate who has just finished reading Audit Sampling (ISA 530), you now saw it as an opportunity to recall and explain what you have read. You are excited to explain the above to the students.

Required:

a. Highlight key decisions to be made to influence the sample size. (4 Marks)

b. Outline the advantages and disadvantages of using statistical sampling. (8 Marks)

c. Explain the sample selection methods that will give equal chance to all the items in the population. (3 Marks)

d. Illustrate what the auditors should do when performing procedures on the samples. (5 Marks)

Answer

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Tags: Audit Sampling, ISA 530, Population Testing, Sample Size, Sampling Methods, Statistical Sampling
Level: Level 3

Topic: Audit Planning and Strategy
Series: NOV 2022

AA – Nov 2023 – L2 – Q2 – Audit Evidence

Discuss requirements and methods for designing an audit sample and circumstances when sampling may be inappropriate.

Question

ISA 530 Audit sampling states that the objective of the auditor when using audit sampling is to provide a reasonable basis to draw conclusions about the population from which the sample is drawn.

Required:

a. In accordance with ISA 530, what are the requirements the auditor should consider in designing a sample size? (6 Marks)

b. Explain FIVE sampling methods that are available for the use of the auditor. (10 Marks)

c. State FOUR circumstances where sampling may not be appropriate for use by the auditor. (4 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, Audit Methods, ISA 530, Non-Sampling Circumstances, Sampling
Level: Level 2

Topic: Audit evidence

AA – May 2017 – L2 – Q4a – Audit and Assurance Evidence

Explanation of the difference between statistical and non-statistical sampling, and methods of sample selection.

Question

ISA 530 Audit Sampling states that the objective of the auditor, when using audit sampling, is to provide a reasonable basis for the auditor to draw conclusions about the population from which the sample is selected.

Required:
Explain the difference between statistical sampling and non-statistical sampling and describe FOUR methods of sampling selection.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Sampling, ISA 530, Non-Statistical Sampling, Sampling Methods, Statistical Sampling
Level: Level 2

Topic: Audit and Assurance Evidence
Series: MAY 2017

AAA – Nov 2022 – L3 – SB – Q4 – Audit Planning and Strategy

Discuss audit sampling rationale, key decisions, advantages, sampling methods, and auditor actions in sample testing.

Question

Required:

a. Highlight key decisions to be made to influence the sample size. (4 Marks)

b. Outline the advantages and disadvantages of using statistical sampling. (8 Marks)

c. Explain the sample selection methods that will give equal chance to all the items in the population. (3 Marks)

d. Illustrate what the auditors should do when performing procedures on the samples. (5 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Sampling, ISA 530, Population Testing, Sample Size, Sampling Methods, Statistical Sampling
Level: Level 3

Topic: Audit Planning and Strategy
Series: NOV 2022

AA – Nov 2023 – L2 – Q2 – Audit Evidence

Discuss requirements and methods for designing an audit sample and circumstances when sampling may be inappropriate.

Question

ISA 530 Audit sampling states that the objective of the auditor when using audit sampling is to provide a reasonable basis to draw conclusions about the population from which the sample is drawn.

Required:

a. In accordance with ISA 530, what are the requirements the auditor should consider in designing a sample size? (6 Marks)

b. Explain FIVE sampling methods that are available for the use of the auditor. (10 Marks)

c. State FOUR circumstances where sampling may not be appropriate for use by the auditor. (4 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, Audit Methods, ISA 530, Non-Sampling Circumstances, Sampling
Level: Level 2

Topic: Audit evidence

AA – May 2017 – L2 – Q4a – Audit and Assurance Evidence

Explanation of the difference between statistical and non-statistical sampling, and methods of sample selection.

Question

Required:
Explain the difference between statistical sampling and non-statistical sampling and describe FOUR methods of sampling selection.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Sampling, ISA 530, Non-Statistical Sampling, Sampling Methods, Statistical Sampling
Level: Level 2

Topic: Audit and Assurance Evidence
Series: MAY 2017

Question Tag: ISA 530

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AAA – Nov 2022 – L3 – SB – Q4 – Audit Planning and Strategy

Discuss audit sampling rationale, key decisions, advantages, sampling methods, and auditor actions in sample testing.

AA – Nov 2023 – L2 – Q2 – Audit Evidence

Discuss requirements and methods for designing an audit sample and circumstances when sampling may be inappropriate.

AA – May 2017 – L2 – Q4a – Audit and Assurance Evidence

Explanation of the difference between statistical and non-statistical sampling, and methods of sample selection.

AAA – Nov 2022 – L3 – SB – Q4 – Audit Planning and Strategy

Discuss audit sampling rationale, key decisions, advantages, sampling methods, and auditor actions in sample testing.

AA – Nov 2023 – L2 – Q2 – Audit Evidence

Discuss requirements and methods for designing an audit sample and circumstances when sampling may be inappropriate.

AA – May 2017 – L2 – Q4a – Audit and Assurance Evidence

Explanation of the difference between statistical and non-statistical sampling, and methods of sample selection.

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AAA – Nov 2022 – L3 – SB – Q4 – Audit Planning and Strategy

Discuss audit sampling rationale, key decisions, advantages, sampling methods, and auditor actions in sample testing.

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AA – Nov 2023 – L2 – Q2 – Audit Evidence

Discuss requirements and methods for designing an audit sample and circumstances when sampling may be inappropriate.

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AA – May 2017 – L2 – Q4a – Audit and Assurance Evidence

Explanation of the difference between statistical and non-statistical sampling, and methods of sample selection.

You're reporting an error for "AA – May 2017 – L2 – Q4a – Audit and Assurance Evidence"

AAA – Nov 2022 – L3 – SB – Q4 – Audit Planning and Strategy

Discuss audit sampling rationale, key decisions, advantages, sampling methods, and auditor actions in sample testing.

You're reporting an error for "AAA – Nov 2022 – L3 – SB – Q4 – Audit Planning and Strategy"

AA – Nov 2023 – L2 – Q2 – Audit Evidence

Discuss requirements and methods for designing an audit sample and circumstances when sampling may be inappropriate.

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AA – May 2017 – L2 – Q4a – Audit and Assurance Evidence

Explanation of the difference between statistical and non-statistical sampling, and methods of sample selection.

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