AUD — Quick Sheet
Audit Sampling
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- Effectiveness risks (dangerous): over-reliance on controls, incorrect acceptance
- Efficiency risks (just costly): under-reliance, incorrect rejection
- Sample size ↑ with higher RMM, higher expected misstatement, higher confidence; ↓ with higher tolerable misstatement; population size barely matters
- Attribute sampling → tests of controls (deviation rate); Variables → substantive (dollar amounts)
- PPS: emphasizes large items, efficient with few errors, poor at detecting understatement
- Always project sample misstatement to the population