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

Non current assets or fixed assets, Non Current Assets or Fixed Assets ...

Non Current Assets or Fixed Assets In usual countries, not current assets are commonly classified like: a) Intangible assets Patents Licences Developme

Contents of working papers - audit, Contents of Working Papers - Audit ...

Contents of Working Papers - Audit The ISA 230 No.3 stresses which audit working papers may always be adequately complete and detailed to enable an experienced auditor along w

Why audit of procurement is considered important, The Department of Higher ...

The Department of Higher Education (DoHE) in the Ministry of Education awarded a contract for support of 60 computers to My IT Co. Ltd. and the contract conditions required the del

What is an audit process, In previous times, the Kings used to hear their a...

In previous times, the Kings used to hear their accountants narrate the accounts verbally. Though, as the complexity of the accounting function grew, require was felt to thoroughly

Explain the before an audit processes?, ? Decide what areas of the company ...

? Decide what areas of the company will be audited and the frequency of the audits. Prepare a yearly audit schedule and distribute. ? Make an audit plan. Decide what other audit r

Debtors - audit process, Debtors - Audit Process Considering that what...

Debtors - Audit Process Considering that what we have gone by on the other assets the audit work to check the figure of trade debtors should be follows as: 1) Get a schedul

Process to adopt liabilities, Process to Adopt Liabilities It is signi...

Process to Adopt Liabilities It is significant that the auditor realises which such liabilities can exist and he should obtain reasonable steps to unearth them whether they ex

Audit evidence, State four factors considered determining sufficiency of a...

State four factors considered determining sufficiency of audit evidence

Current audit file, Current Audit File The current audit file may invo...

Current Audit File The current audit file may involve inter alia: a) A copy of the audited financial statements and other report prepared such as a conclusion of audit work

Reliance on the work of other auditors, Reliance on the Work of Other Audit...

Reliance on the Work of Other Auditors The principal auditor or the primary auditor is solely responsible for the holding company's accounts. So here it is inevitable but that

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