Audit Sampling – ACCA Audit and Assurance (AA)
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@kukive, I asked the student to please ask in the tutor forum https://opentuition.com/forum/ask-acca-tutor-forums/ask-the-tutor-acca-audit-and-assurance-aa-exams – the space here is for “comment” rather than query. In the ratio method, all you’re doing is calculating the “actual error” as the amount you want to extrapolate to the population, it doesn’t change the amount of the population or the amount of the sample.
Hello sir. In the notes on pg 68, there is a calculation on extrapolating the sample error to the population. The following details are available:
Total purchases are $800,000. Errors in the sample total $5,600. Investigation shows that $1,500 is an isolated error (anomaly) and $4,100 are due to overpricing. Therefore, sample error amounts to $4,100 which I understand. HOWEVER, WHY IS THE $1,500 DEDUCTED ONLY FROM THE VALUE OF TOTAL PURCHASES SUBSEQUENTLY AND NOT THE VALUE OF THE SAMPLE WHEN CALCULATING THE POPULATION ERROR?
Thanks in advance and sorry if it’s not the correct platform to ask this question.
I have the same problem, can someone advise on yadmuthoora’s question? Thank you
Please ask in the tutor forum https://opentuition.com/forum/ask-acca-tutor-forums/ask-the-tutor-acca-audit-and-assurance-aa-exams – the space here is for “comment” rather than query.
hey, did you get a response for this?
Thanks for the Lecture.
Monetary unit selection, can I say that this statical method is almost based on materiality?
Best Regards
What do you mean by “almost based on materiality”?
Using Monetary sampling the auditor ends up testing the items that has a majority in the monetary unit, in the example in the lecture big customers. Those transactions are more material or important than comparatively small transactions. Maybe thats what he meant I also have that presumption in my mind .Is it wrong?
All audit procedures are based on materiality in some way – if a matter is not material, it is irrelevant to the financial statements.
Please use the ask the AA tutor forum if you wish to continue this discussion.
It is mentioned in the lecture that Stratification is a form of statistical sampling.
However, the BPP notes very clearly state that Stratification is NOT sampling because the population has been divided into sub-populations.
Can this please be clarified as to which is correct?
Many thanks for your help in advance.
i didnot understand why $605 was choosen as first random selection ? plz give more specific explaination uppn selectiong amount 605 as first random dollaramount?
It’s random.
in the video you have spoken about sampling risk and over reliance , under reliance. now in the notes i downloaded this things are not there. does it mean this is not important?
Thanks
Sandala.
thank you sir..
By inspection, ensure that bank reconciliations have been regularly prepared.
Reperform the year-end reconciliation plus one other.
afternoon ,can you please tell me the audit procedure of bank reconciliation please