Introduction to Sampling and Analytical Review

LEARNING FORMAT

On-demand video webinar. The date shown above is the expected release date of the on-demand module.

OBJECTIVES

Once Audit Materiality has been set, the auditor needs to understand how much work to do to obtain sufficient audit evidence. Where this work is performed via Sampling, the auditor needs to decide if sampling is the correct approach, and if it is, how many items to test.

In this session we will cover the correct approach to calculating sample sizes.

Analytical Review (AR) and Substantive Analytical Procedures (SAPs) are often poorly understood and performed but they play a vital in planning, performing and completing a quality audit.

In this session we will define what these procedures are and how they fit into the audit process. Then by using practical examples, we will show how SAPs can be an effective tool to gather audit evidence.

KEY TOPICS

Sampling

• Identify why auditors sample rather than testing everything
• The different methods of sampling
• Impact of controls testing and Substantive Audit Procedures (SAPs) / Substantive Audit Data Analytics (SADAs)
• Dealing with errors
• Summarising, concluding and recording the sampling
• Introduction to the sample calculator in Inflo

Analytical review

• Understanding the different kinds of Analytical Review (AR) and SAPs
• The role of AR in planning and completion
• The use of SAPs, ISA requirements and relevant examples where they can replace or reduce other forms or testing

WHO SHOULD ATTEND

The course will be relevant to new accountants in their first year in practice.