Factors affecting statistical technique, Auditing

Assignment Help:

Factors Affecting Statistical Technique

Factors to be taken into concern before adopting statistical techniques as:

a) The number of clients to whom it is appropriate since set up training and costs can be very much;

b) Large populations must exist such as statistics is the science of large figures;

c) The objective being to test them it is of course and adequate controls must exist that whether uncontrolled exists after that you cannot apply statistical sampling;

d) They must be homogenous in which the same system also and controls should apply to all one of them. The populations to be tested must be homogenous in materiality. In other words they have being subject to the same treatment.

e) Too many variables cannot be tested on a time;

f) Therefore sequential numbering is essential because Items must be separately identifiable;

g) The error must be defined or describe;

h) Materiality: the auditor must wish any variances from it and the total value of the population;

i) The risk factor: some items have much more risk than others;

j) The accessibility of other evidence.  Whether evidence can be obtained with other means, rather than statistical sampling may merely be a top up.


Related Discussions:- Factors affecting statistical technique

When does an audit trail start, Question: Explain the type of audit con...

Question: Explain the type of audit conducted by the sponsor when he suspects or comes to know that the site will be audited by FDA. A Mention type of audit conducted by the

What is an audit and why there is need for an audit, Question: (a) What...

Question: (a) What is an audit? Why there is need for an audit? (b) Explain the steps the auditor must take before deciding whether to accept the nomination as auditor. (

Presentation and disclosure - audit of accounting estimates, Presentation a...

Presentation and Disclosure - Audit of Accounting Estimates An enterprise should involve the following information relating to a discontinuing operation in its financial state

Internal control systems, Internal Control Systems ISA 400: “Internal c...

Internal Control Systems ISA 400: “Internal control system” means all the policies and processes (i.e., internal controls) accepted by the management of an entity to assist in

Steps to preparing the audit, With reference to the case study business, pl...

With reference to the case study business, plan an audit. You should make specific reference in your plan to: Scope of the audit Materiality Risk factors including fra

The accounting system, The Accounting System ISA 400 Risk Assessment an...

The Accounting System ISA 400 Risk Assessment and Internal Control accounting system are the sequence of tasks and records of an entity by which transactions are procedure as a

Dealings with directors and other parties, Dealings with Directors and Othe...

Dealings with Directors and Other Parties - Sundry Debtors and Loans Dealings along with directors and other related parties: The auditor's duties are follows as: i. The revi

Illegal acts, ILLEGAL ACTS Auditors may uncover criminal offences commi...

ILLEGAL ACTS Auditors may uncover criminal offences committed by a client or an employee of the client. This puts them in a difficult place, though the auditor must act careful

Procedures in evaluating the work of expert, Procedures in Evaluating the W...

Procedures in Evaluating the Work of Expert The auditor must get reasonable assurance which the expert's work constitutes suitable audit evidence in based of the financial inf

Joint audits-advantages-disadvantages, General advantages and disadvantages...

General advantages and disadvantages of joint audits Advantages: All work and fees are welcome to audit firms. An opportunity to closely inspect the auditing methods

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd