Skip to content

Audit

GLOSSARY – AUDITING

GLOSSARY – AUDITING : 1 Accuracy assertion It refers to management assertion that amounts and other data relating to recorded transactions and events have been recorded appropriately. 2 Adverse Opinion […]

Auditor’s Liability

Auditor’s Liability : If any errors are found in the accounts the auditor cannot take the shield against the fact that he conducted test check. The auditor should very carefully […]

Disadvantages of Test Check

Disadvantages of Test Check : 1. The auditor always is under fear whether he has missed out certain important items or that errors have remained undetected while test checking. 2. […]

Advantages of Test Check

Advantages of Test Check 1. Volume of work is considerably reduced. 2. There is a saving in terms of time, cost and energy. 3. The extra time available can be […]

TEST CHECKING V/S STATISTICAL SAMPLING

TEST CHECKING V/S STATISTICAL SAMPLING Selection of items for the purpose of checking can be done in two ways: (i) Judgment (ii) Statistical Sampling. When the judgment method is applied, […]

TEST CHECKS AND TECHNIQUES OF TEST CHECKING

TEST CHECKS AND TECHNIQUES OF TEST CHECKING : Carrying out detailed check of each and every transaction of a large business shall be time consuming for the auditor. In auditing […]

SELECTION OF THE SAMPLE

SELECTION OF THE SAMPLE : The auditor should select sample items in such a way that the sample can be expected to be representative of the population. This requires that […]

TOLERABLE ERROR

TOLERABLE ERROR Tolerable error is the maximum error in the population that the auditor would be willing to accept and still concludes that the result from the sample has achieved […]

FACTORS IN DETERMINING SAMPLE SIZE- SAMPLING RISK

FACTORS IN DETERMINING SAMPLE SIZE- SAMPLING RISK (1) When determining the sample size, the auditor should consider sampling risk, the tolerable error, and the expected error. (2) Sampling risk arises […]

SAMPLING

SAMPLING Audit sampling is the testing of less than 100% of the items within a population to obtain and evaluate evidence about some characteristic of that population, in order to […]