A study guide to advanced statistical auditing techniques.
PLAN THE SAMPLE
Decide whether or not to sample. (Applies to all circumstances.)
Define the audit objective.
The audit objective usually comes directly from the audit program or is a variation that has been modified by the auditor to fit the specific circumstances. If there is no standard audit program, the auditor must define an audit objective appropriate for the unique audit.
Consider all knowledge available to date. All available information about the company and its transactions should be considered in planning the audit and any required sampling. This information may come from prior audits, historical files, profiles, questionnaires, risk assessment, survey results, input from other disciplines, etc. This information will help in refining the audit objective and the audit tests required to achieve that objective.
Once the audit objective is defined, audit testing can be designed to achieve that objective. The appropriate audit testing will vary depending on the audit objective.
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