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

Assertions about disclosure, Assertions about disclosure Assertions ...

Assertions about disclosure Assertions about disclosure and presentation : a) Rights and Occurrence and obligations -disclosed transactions and events and other issues

Evaluation of audit evidence, Question: "The planning, testing, and eva...

Question: "The planning, testing, and evaluation of audit evidence for indicia of fraud are unlikely to be successful without that attitude, particularly because fraud is a cri

Management representations as source of audit evidence, Management Represen...

Management Representations as a Source of Audit Evidence International Standard on Auditing as abbreviated ISA 580 Management Representations gives guidance and standards on t

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

Definition of auditing , Definition of Auditing According to Internatio...

Definition of Auditing According to International Standard on Auditing (ISA) objective and common principles governing an audit of financial statements, the purpose of a financ

Calculate the loss suffered by the shareholders, In June 2004, Feltex Carpe...

In June 2004, Feltex Carpets Limited raised NZ $254 million in an initial public offering. Twenty seven months later the company was in receivership, its share price having collaps

Internal audit, a. Discover Fifty strengths and Fifty weaknesses after cond...

a. Discover Fifty strengths and Fifty weaknesses after conducting an internal audit of a company. b. What procedures could then be used to determine the most important of these?

Higher normal risk, Higher  normal risk Several audit assignments invo...

Higher  normal risk Several audit assignments involve high audit risk and usually in any client there will always be at least one high risk area.  Indications that an audit has

Auditing case study, Fortex Limited, the meat processing firm, was formed i...

Fortex Limited, the meat processing firm, was formed in 1985 from three smaller companies. In 1993, however, after a few years of spectacular growth, the company collapsed. a)

RISKS AND CONTROLS, oversee commission staff to ensure individuals are prop...

oversee commission staff to ensure individuals are properly trained and monitored probable risks, controls and audit tests

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