Audit Sampling is very important to auditor to make their audit because easy for auditor fulfill their job with give opinion and make a conclusion from the account balance. It is not practical for auditor to audit 100% of the items in the account balance, that why auditor apply for audit sampling to obtain audit evidence from the account balance. Audit Sampling is testing less than 100% of the item within a population on a company client to obtain and evaluate evidence about some characteristics of that population. Population means that the entire of set of data which sample are selected. The objective auditor apply for audit sampling is to provide a reasonable basis for auditor to draw a conclusion about population from which sample*…show more content…*

Statistical sampling can be classified with three criteria: 1) the sample size must be determined objectively or quantitatively, 2) the sample must be selected randomly and 3) the sample result must be evaluated mathematically. Statistical sampling is appropriate when the population is made up of large number of similar transaction and internal control is good, if internal control is poor the auditor may have difficult errors in advance so may use non-statistical sampling. When auditor want to evaluated sample result statistically with a substantive test, the auditor should determines the most likely estimate of the price amount of error in the population and calculates the range within the true. In test of control the auditor must finds the error rate of sample and then determine how high the actual error rate could be, at a particular level of*…show more content…*

In non-statistical sampling those items that the auditor believes will provide the most useful information are selected. On the part of the internal control system, auditor will use statistical sampling when internal control is good and if internal control is poor it is appropriate to auditor use non-statistical sampling, Summarize between statistical sampling and non-statistical sampling is for statistical sampling is appropriate when using a random selection, systematic selection, probability proportion of size and monetary unit sampling. Non-statistical sampling is appropriate when using a two method which haphazard selection and block

Statistical sampling can be classified with three criteria: 1) the sample size must be determined objectively or quantitatively, 2) the sample must be selected randomly and 3) the sample result must be evaluated mathematically. Statistical sampling is appropriate when the population is made up of large number of similar transaction and internal control is good, if internal control is poor the auditor may have difficult errors in advance so may use non-statistical sampling. When auditor want to evaluated sample result statistically with a substantive test, the auditor should determines the most likely estimate of the price amount of error in the population and calculates the range within the true. In test of control the auditor must finds the error rate of sample and then determine how high the actual error rate could be, at a particular level of

In non-statistical sampling those items that the auditor believes will provide the most useful information are selected. On the part of the internal control system, auditor will use statistical sampling when internal control is good and if internal control is poor it is appropriate to auditor use non-statistical sampling, Summarize between statistical sampling and non-statistical sampling is for statistical sampling is appropriate when using a random selection, systematic selection, probability proportion of size and monetary unit sampling. Non-statistical sampling is appropriate when using a two method which haphazard selection and block

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## What Are The Difference Between Descriptive And Inferential Statistics

1130 Words | 5 PagesThe observed difference was created by sampling errors, keeping in mind there is no bias because the survey is done randomly. 2. Null hypothesis also occurs when there is no true difference between the two groups. This meaning that the true difference is the difference a researcher would find if there were no sampling errors. 3.

## The Chi Square Test For Independence

810 Words | 4 PagesThe Chi-Square is used in two circumstances as below: i) When the researcher want to estimate how closely the observed distribution matches the proportions that is expected. This is called ‘goodness of fit’ test. ii) When the researcher wishes to estimate whether random variables used are independent. Assumptions of the Chi-Square Test: i) To use Chi-Square test for independence, the two variables that are used must be of categorical data i.e. the data ought to be measured at nominal or ordinal levels.

## Descriptive Statistics: Raw Data

756 Words | 4 PagesData collected were analyzed by using three approaches: 1. Cronbach’s alpha (a) was used to test the reliability. Cronbach’s alpha indicates how well the items in a set are positively correlated to one another. This is to make sure that the scales are free of random or unstable errors and produce consistent results over time (Cooper & Schindler, 1998); 2. Descriptive statistics where the researcher used mean, standard deviation and variance to get an idea on how the respondents reacted to the items in the questionnaire.

## No Aid, No Violation: Answers to Questions

2618 Words | 11 PagesKim and Kolen (2010) pointed out that the unsmoothed method is most appropriate in the study in order to avoid to the influence of the smoothed equipercentile equating method (used to remove irregularities) on population invariance. For example, smoothing could produce lower standard errors than the USEE Kolen and Brennan (2004). As a result, unsmoothing equipercentile equating method was used. 3. The equally-weighted root expected square difference (ewREMSD) was used in the study to give equal weight to all score points and to examine the impact of the subgroups on the test takers success or failure designations.

## The Audit Of Accounts Payable Case Study

1133 Words | 5 PagesThis evidence should not be accepted, because the reliability of the evidence is flawed. The best type of confirmation that the auditor could have received would have been written confirmations from the external parties. Looking at this situation, the auditor should have made a professional judgement call to determine if the evidence received was persuasive enough for him to make an accurate determination on the accuracy of the Accounts Payable. With such a small sample size, the auditor is taking on too much audit risk, and ... ... middle of paper ... ...ment made showing gratitude to the accountants that provided review services for the business since its date of incorporation. e. Since it is the PA firm’s responsibility to conduct audits, it is a public accountant’s objective to adhere to CAS 200 whereby their objectives are to provide reasonable assurance that the financial statements are not misstated, consider the possibility of fraud or error and communicate finding in accordance with the Canadian Auditing Standards.

## The New Science of Risk Management: Value-at-Risk

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## Scorecard System

1383 Words | 6 PagesThus, it may not make much sense to deploy a scorecard system that relies on inaccurate cost data. It's important to evaluate the overall cost accounting system before making the decision to deploy a scorecard system. The benefits achieved will be greater if the costing system is highly accurate. It would be wise to consider deploying both systems simultaneously if resources permit. Based on the findings reported above, we have developed a short questionnaire shown in Table 1 that can be used as an assessment tool.

## Importance Of Audit Risk

765 Words | 4 PagesSome control risk may always exist, it is due to the inherent limitations of internal control. The auditor can assess control risk at a certain level. For example, the auditor can choose the maximum of 100% to estimate control risk. This is because it is determined that there are not related controls or the auditor does not expect the controls will be effective operated. The auditor can also set control risk at the maximum level in the belief that it is more efficient or less costly to conduct extensive substantive procedures of the account balance than to conduct detailed tests of the controls.

## Methodology Of The Quantitative Method

2132 Words | 9 PagesJustification for the choice of this approach is dealt with below. 3.2 Quantitative Method According to Lee (1999), qualitative research is well suited for describing, interpreting and explaining. However it is not well suited for examining issues of prevalence, generalizability or calibration. On the other hand, quantitative research can cover the latter issues. The purpose of conducting quantitative research is to be able to generalise from a sample to a population so that inferences can be made about some

## Qualitative Research

1508 Words | 7 PagesHowever, as a mixed ... ... middle of paper ... ...suggests that the disadvantages of quantitative research often relate to errors in the collection process. The quantitative method of research that will be adopted for this study will be a survey. Utilizing this form of deductive methodology in a positivistic paradigm will allow the statistical data to be interpreted according to the appropriate theory and allow its findings to be concise and appropriate to the research. A stratified sample will be adopted as the whole population of the organisation can be categorized depending on their views of equality in the workplace. All employees of the organisation will be required to complete a short 10 minute survey containing carefully constructed questions; this will be the basis of the qualitative research in that the findings from the survey can be analysed in order to develop more detailed questions in the focus group.

### What Are The Difference Between Descriptive And Inferential Statistics

1130 Words | 5 Pages### The Chi Square Test For Independence

810 Words | 4 Pages### Descriptive Statistics: Raw Data

756 Words | 4 Pages### No Aid, No Violation: Answers to Questions

2618 Words | 11 Pages### The Audit Of Accounts Payable Case Study

1133 Words | 5 Pages### The New Science of Risk Management: Value-at-Risk

1230 Words | 5 Pages### Scorecard System

1383 Words | 6 Pages### Importance Of Audit Risk

765 Words | 4 Pages### Methodology Of The Quantitative Method

2132 Words | 9 Pages### Qualitative Research

1508 Words | 7 Pages

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