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

Communications to regulatory and enforcement authorities, Communications to...

Communications to Regulatory and Enforcement Authorities The auditor’s professional responsibility to sustain the confidentiality of client information ordinarily prevents repo

Accounting concept and records-consistency, What fundamental accounting con...

What fundamental accounting concepts must you keep in mind in preparing to carry out your audit? Accounting Concept and Records Fundamental Accounting concepts are cove

GOODWILL in group, audit procedures in business combination conserning Good...

audit procedures in business combination conserning Goodwill

Classification of individual business risk, Classification of Individual Bu...

Classification of Individual Business Risk Individual business risk can be low or high impact and low or high likelihood. Here are some illustrations for a satirical magazine.

Ifrs 5 non-current assets, IFRS 5 Non-Current Assets IFRS 5 Non-Curren...

IFRS 5 Non-Current Assets IFRS 5 Non-Current Assets Held for Discontinued and Sale Operations The Discontinuing Operation is a component of an enterprise: (a)  Such the

Internal Audit., #quInternal Audit checklist for fixed assetsestion..

#quInternal Audit checklist for fixed assetsestion..

Auditor-client relationship, describe possible factors in the auditor-clien...

describe possible factors in the auditor-client relationship that can make it more difficult for the auditor to detect fruad

Internal control, Internal Control Procedures: As an auditor, you have disc...

Internal Control Procedures: As an auditor, you have discovered the following problems with the accounting system control procedures of Jim's Supply Store. For each of the followin

What does an internal audit charter contain, This charter defines the missi...

This charter defines the mission, independence and objectivity, scope and responsibilities, authority, accountability and standards of the Internal Audit function. A charter i

THREATS TO INDEPENDENCE, WHAT ARE THE MAJOR PROBLEMS INVOLVED IN THE USE OF...

WHAT ARE THE MAJOR PROBLEMS INVOLVED IN THE USE OF A PERSONAL COMPUTER BASED PC SYSTEM BY A SMALL COMPANY

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