If the Population Is Not Considered Acceptable,one Step the Auditor
If the population is not considered acceptable,one step the auditor is likely to take is to:
A) retest all internal controls.
B) ask the client to adjust the account balance.
C) test the entire population.
D) decrease inherent risk.
There are 14 steps to audit sampling for details of balances,divided into three sections:
plan the sample,select the sample and perform the audit procedures,and evaluate the results.Discuss each of the steps included in the "evaluate the results" section for nonstatistical sampling.
Consider the steps in sampling for tests of details and for tests of controls.Explain the differences in applying sampling to these two types of tests.
Identify each of the seven factors that influence sample size for nonstatistical tests of details of balances,and state whether each factor is directly or inversely related to sample size.