Overview

Given the size and complexity of most entities needing a financial statement audit, it is usually not economical to examine all of the accounting records and supporting documents. Auditors therefore often find it necessary to draw conclusions about the fairness of financial statement assertions based on examinations of samples of the records and transactions. This module provides an introduction and overview of audit sampling and applies these sampling techniques to tests of controls.

Learning objectives

This week, our activities, content, and assignments will help you do the following:

LO 8-1: Learn the definition of audit sampling and why auditors use sampling to gather evidence.
LO 8-2: Understand basic sampling terminology.
LO 8-3: Learn the types of audit procedures that do and do not involve sampling.
LO 8-4: Learn the types of audit sampling.
LO 8-5: Learn the sampling requirements in auditing standards.
LO 8-6: Learn how to apply attribute sampling to tests of controls.
LO 8-7: Work through an example of attribute sampling.
LO 8-8: Learn how to apply nonstatistical sampling to tests of controls.

Weekly plan

Here's everything you need to do and remember for the week. These items will all appear, in order, in the Module for this week.

Do the weekly reading assignment in McGraw-Hill Connect
Take the weekly quiz on McGraw-Hill Connect
Join the Live Session on Wednesday at 7:00 pm (Central)
Prepare for Exam 2
Submit Exam 2 by Sunday at 11:59 pm. (Central)