Auditing Standard No. 530: Sampling in Auditing
Auditing Standard No. 530: Sampling in Auditing:
Auditing Standard No. 530, which we want to introduce you to in this article.
Statistical Society
Society, the entire set of data from which the sample is selected and the auditor wants to draw conclusions about it (paragraph 5-p).
Sampling unit
Sampling unit, each of the constituent items of a community (clause 5-d).
Sampling units may be physical items (for example, bank receipts, documents in the collection process, bank statement creditor items, sales invoices or accounts receivable balances) or monetary units (paragraph T-2).
Statistical sampling
Statistical sampling is an approach to sampling that has these characteristics:
Random selection of sample items, and
Using probability theory to evaluate sample results, including measuring sampling risk.
A sampling approach that does not have the above characteristics is considered non-statistical sampling (paragraph 5-h).
Audit sampling
Audit sampling is the application of audit methods to less than 100 percent of the items that make up the audited community, so that each sampling unit has a chance of being selected in order to provide a reasonable basis for drawing conclusions about the entire community (paragraph 5). -kh).
Deciding whether to use a statistical or non-statistical sampling approach depends on the independent auditor’s judgment.
However, the sample size is not a valid criterion to distinguish the statistical approach from the non-statistical approach (Paragraph T-9).
Sampling risk
Sampling risk is the risk that the independent auditor’s conclusion based on the sample can be different from his conclusion of applying the same audit method to the entire population.
The risk of sampling can lead to two types of wrong conclusions (paragraph 5-c).
Risk of non-sampling
Risk of non-sampling, the risk of this auditor reaching incorrect conclusions for reasons unrelated to sampling risk.
Examples of non-sampling risk include the use of inappropriate audit methods, or misinterpretation of audit evidence and failure to recognize a distortion or deviation in the examined items (paragraph 5-t).
Tolerable distortion
Tolerable distortion is the amount of money that the auditor determines and tries to reach an appropriate level of confidence that the actual distortion in the society does not exceed this amount (paragraph 5-b).
When designing the sample, the independent auditor should take into account the risk that the aggregate of immaterial misstatements alone may result in a material misstatement of the financial statements and, by including a margin for possible undetected misstatements, determine the tolerable misstatement. determines
Tolerable distortion is the application of significance in implementation of a particular sampling method.
The tolerable distortion may be an amount equal to or less than the amount of significance in the implementation (Paragraph T-3).