The rapid growth of American companies at the beginning of the twentieth century resulted in a high demand for audits which are based on selected tests of items that represent the account balances or classes of transaction. Some auditors used to include every transaction from the respective period into the examination. However, some groups of auditors begin to develop methods to apply statistical sampling in auditing processes during the 1950s.
This paper is structured as follows: in the main part, audit sampling and relevant terms are discussed. Representativeness of the sample is mentioned, which is significant aspect to make proper conclusions in respect to the population. The different types of generating population and their advantages for sampling. Furthermore, different sampling methods with each other compared, and the advantages and disadvantages of sample selection methods are discussed. In the third part, the main parameters of audit sampling are discussed in detail and their effects on the sample size and overall audit process are mentioned. In the fourth part, MUS system and its benefits and restrictions are clarified. The fifth part summarizes and concludes with the help of the Excel sample.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Audit Sampling
- Statistical versus Non-Statistical Sampling
- Probabilistic versus Non-Probabilistic Sample Selection
- Parameters of Audit Sampling
- Monetary Unit Sampling (MUS)
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This seminar paper aims to explore the intricacies of audit sampling within the context of auditing. It delves into the various methodologies and parameters involved in this crucial aspect of the audit process.
- Statistical vs. Non-statistical sampling methods
- Probabilistic vs. non-probabilistic sample selection techniques
- Key parameters influencing audit sample size and design
- Application and implications of Monetary Unit Sampling (MUS)
- Understanding the role of audit sampling in ensuring audit quality
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction: This chapter likely provides an overview of audit sampling, its importance in the auditing process, and a roadmap for the subsequent sections. It might introduce the different types of sampling methods and their applications, setting the stage for a more detailed examination in later chapters.
Audit Sampling: This chapter forms the core of the paper, introducing the fundamental concepts of audit sampling. It differentiates between statistical and non-statistical approaches, explaining the advantages and disadvantages of each. It likely discusses the various methods used to select samples, highlighting the importance of appropriate sample selection to achieve reliable audit results. The chapter likely emphasizes the relationship between sample size, sampling risk, and the overall audit objective.
Parameters of Audit Sampling: This chapter focuses on the factors that influence the design and size of an audit sample. It likely explores the relationship between tolerable exception rate, expected population exception rate, and the acceptable risk of assessing control risk too low. The chapter would detail how these parameters interact to determine the appropriate sample size and how changes in one parameter affect the others. It might also delve into the practical implications of choosing different parameter values in different audit contexts.
Monetary Unit Sampling (MUS): This chapter provides a detailed explanation of Monetary Unit Sampling, a specific statistical sampling technique widely used in auditing. It explains the methodology of MUS, detailing how it works and how it is applied in practice. It likely compares and contrasts MUS with other sampling techniques, highlighting its strengths and weaknesses. The discussion probably covers the advantages of MUS in identifying monetary misstatements, as well as its potential limitations.
Schlüsselwörter (Keywords)
Audit sampling, statistical sampling, non-statistical sampling, probabilistic sampling, non-probabilistic sampling, monetary unit sampling (MUS), tolerable exception rate (TER), expected population exception rate (EPER), sample size, audit risk, control risk.
Frequently Asked Questions: A Comprehensive Language Preview on Audit Sampling
What is the purpose of this document?
This document provides a comprehensive preview of a seminar paper exploring audit sampling. It includes the table of contents, objectives, key themes, chapter summaries, and keywords.
What topics are covered in the seminar paper?
The seminar paper covers various aspects of audit sampling, including statistical versus non-statistical sampling, probabilistic versus non-probabilistic sample selection, key parameters influencing sample size and design, the application of Monetary Unit Sampling (MUS), and the role of audit sampling in ensuring audit quality.
What are the key differences between statistical and non-statistical sampling?
The paper differentiates between statistical and non-statistical sampling methods, outlining the advantages and disadvantages of each approach. This distinction is central to understanding the reliability and validity of audit conclusions.
What is the significance of probabilistic and non-probabilistic sample selection?
The document highlights the importance of appropriate sample selection techniques, emphasizing the impact of both probabilistic and non-probabilistic methods on achieving reliable audit results.
What parameters influence audit sample size and design?
The paper analyzes the parameters that influence the design and size of an audit sample. This includes the relationship between tolerable exception rate, expected population exception rate, and the acceptable risk of assessing control risk too low. The interaction of these parameters in determining the appropriate sample size is a key focus.
What is Monetary Unit Sampling (MUS), and how is it applied?
The paper provides a detailed explanation of Monetary Unit Sampling (MUS), a statistical sampling technique widely used in auditing. It details the methodology, application, strengths, weaknesses, and comparison to other techniques, emphasizing its role in identifying monetary misstatements.
What is the role of audit sampling in ensuring audit quality?
The paper underscores the importance of audit sampling in maintaining audit quality. The different sampling methods and their impact on the reliability and validity of audit conclusions are discussed.
What keywords are associated with this seminar paper?
Keywords include: Audit sampling, statistical sampling, non-statistical sampling, probabilistic sampling, non-probabilistic sampling, monetary unit sampling (MUS), tolerable exception rate (TER), expected population exception rate (EPER), sample size, audit risk, control risk.
What is included in the Introduction chapter?
The introduction likely provides an overview of audit sampling, its importance, and a roadmap for the following sections. It introduces different sampling methods and their applications.
What is covered in the Audit Sampling chapter?
This chapter delves into the fundamental concepts of audit sampling, differentiating between statistical and non-statistical approaches and discussing various sample selection methods. It emphasizes the relationship between sample size, sampling risk, and audit objectives.
What is discussed in the Parameters of Audit Sampling chapter?
This chapter focuses on factors influencing sample design and size, exploring the relationship between tolerable exception rate, expected population exception rate, and acceptable risk of assessing control risk too low. It details how these parameters interact to determine appropriate sample size.
What does the Monetary Unit Sampling (MUS) chapter cover?
This chapter explains MUS in detail, its methodology, application, and comparison with other techniques. It highlights its advantages in identifying monetary misstatements and its potential limitations.
- Quote paper
- Anonym (Author), 2016, Audit Sampling. Representativeness of Samples, Parameters and Monetary Unit Sampling, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/1382668