Lets talk about sampling.

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    Topic
  • October 9, 2018 at 8:47 pm #2016935
    FutureCPA
    Participant

    Hi ya’ll. I noticed that sampling is a weak topic for many people so I thought it would be a good idea to just drop whatever you know about the topic. I will start.

    Ratio estimation: most effective when the calculated audit amounts are approximately proportional to the client’s book amount. It takes the ratio of the mean of the sample audit value to the mean of the sample book values and applies it to the total book value. This approach is most efficient when the ratio is not equal to one.

    Discovery sampling: is meant to find at least one occurrence when the auditor expects none. It’s a special case of attribute sampling. Is used when the auditor believes that the population occurrence rate is near zero.

    AUD - 73,
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - NINJA in Training
    Giving up is not an option.

    The question is not whether I will be a CPA or not, the question is when will I become a CPA.

    I need to pass before busy season.

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  • October 10, 2018 at 7:57 am #2017307
    Globetrotter
    Participant

    FutureCPA,
    Great idea!

    Stratified Sampling.
    If the population has significant variances in values or characteristics, break it into subgroups.

    AUD - 94
    BEC - 87
    FAR - 87
    REG - 87
    BEC - 87 (03/2019)

    AUD - 94 (11/2018)

    REG - 87 (06/2019)

    FAR - 87 (08/2018)

    October 10, 2018 at 12:22 pm #2017721
    FutureCPA
    Participant

    Thank you! The idea is to make it study sheet for people struggling with the topic.

    Sampling risk: risk that the auditor conclusion based on a sample may be different than the conclusion of the entire population were subject to the same audit procedure.

    AUD - 73,
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - NINJA in Training
    Giving up is not an option.

    The question is not whether I will be a CPA or not, the question is when will I become a CPA.

    I need to pass before busy season.

    October 10, 2018 at 8:37 pm #2018366
    FutureCPA
    Participant

    The objective of Probability Proportional to Size is to identify overstatement errors.

    AUD - 73,
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - NINJA in Training
    Giving up is not an option.

    The question is not whether I will be a CPA or not, the question is when will I become a CPA.

    I need to pass before busy season.

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