Wiley Practitioner's Guide to GAAS 2020

20AU-C 530 Audit Sampling

Scope

Definitions of Terms

Objective of AU-C Section 530

Overview

Requirements

Examined 100%

Sample Selection

Stratification

Unexamined Sample Items

Sample Size: Substantive Test

Sample Size: Test of Controls

Projection of Misstatements

Aggregation of Misstatements

Qualitative Aspects

Relating Balance Sheet and Income Statement Sampling

Nonsampling Techniques

Distinguishing Sampling from Other Audit Tests

Flow-of-Transactions Tests

Nonstatistical Audit Sampling Techniques

Introduction

Methods of Sample Selection

Tests of Controls

Substantive Tests

Statistical Audit Sampling Techniques

Introduction

Calculating Sample Size

Risk and Confidence in Substantive Tests of Details

Statistical Evaluation of a Sample in Substantive Tests of Details

Calculating Confidence Limits

Equal-Probability Sampling: Attributes Evaluation

Dollar Value Evaluation

Equal-Probability Sampling: Variables Evaluation

SCOPE

AU-C 530 offers guidance for using audit sampling when performing audit procedures. However, AU-C 530 is not just for statistical samplers. It applies equally to nonstatistical and statistical sampling. (AU-C 530.01) Either approach to audit sampling, when properly applied, can provide sufficient evidential matter. In addition, the Section establishes specific requirements essential for proper application.

DEFINITIONS OF TERMS

Source: AU-C 530.05. For definitions related to this standard, see Appendix A, “Definitions of Terms”: Audit sampling (sampling), Nonsampling ...