Audit Sampling – Advanced

Duration: 1 hours

Overview:

One of the most common deficiencies identified by audit regulators is the lack of appropriate professional judgment applied. Audit sampling requires significant auditor judgment, and when deficiencies are identified with audit sampling, it creates doubt around the sufficiency and appropriateness of audit evidence obtained.

Experience shows that sample sizes used by auditors during detailed substantive testing are often either not risk-based or based on an inappropriate level of risk. It is crucial for auditors to understand how risk assessment performed during planning interacts with the testing performed during the fieldwork stage of the audit.

Only when this concept is successfully mastered, can the audit procedures addressing responses to the identified risks of material misstatement, be appropriate and adequate to reduce audit risk to an acceptable level. There are also further efficiencies and benefits to be realised from applying appropriate sampling methods throughout the audit.

This course will give participants a practical understanding of risk assessment and sampling, its implementation during an audit, and appropriate documentation in audit working papers.

Content and outline:

To give an overview of risk assessment, and explain the following concepts and demonstrate their practical application:

• Risk as it relates to sampling
• Sampling methods
• Application of sampling during testing
• Correct implementation of requirements in audit working papers
• Common errors.

Certification:

Upon completion of the training, participants will receive a verifiable attendance certificate.