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

Deposits and share - building society, Deposits and Share - Building Societ...

Deposits and Share - Building Society Shares may make of subscription shares and paid up shares. Interest on shares might be credited to ensure specific control to the account

Audit evidence, discuss the factors affecting the sufficiency of audit evid...

discuss the factors affecting the sufficiency of audit evidence

Techniques used during an audit?, What techniques used during an audit? ...

What techniques used during an audit? Ans)  ? Be professional at all times. Avoid being judgmental. ? Follow safety procedures, clean room procedures, and all other needed pr

Action if management refuses to provide representations, Action if Manageme...

Action if Management Refuses to Provide Representations If management refuses to provide a representation that the auditor considers essential, this constitutes a scope restric

International auditing and assurance standards board, The International Aud...

The International Auditing and Assurance Standards Board The IAASB is a Board familiar by IFAC. The associates of the IAASB are selected by the IFAC Board to serve on IAASB. IA

Existence - audit process, Existence - Audit Process In the case of ta...

Existence - Audit Process In the case of tangible assets existence is confirmed through the auditor visually, considering the asset examining and concerned its condition.  Thi

Going concern considerations - audit process, Going Concern Considerations ...

Going Concern Considerations - Audit Process IAS 1 Presentation of Financial Statements knows the going related assumption as one of the fundamental assumptions that underlie

Issues in audit of intangible assets, Issues in Audit of Intangible Assets ...

Issues in Audit of Intangible Assets The two key issues in such audit of intangible assets are: (a) Recognition of intangible assets The audit problem here is to mak

420, Develop an audit program to identify and reduce potential fraud using ...

Develop an audit program to identify and reduce potential fraud using ACL.

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