[StellaFL]

I’m taking my last exam (AUD) next Wednesday. So far, I understand and have done well on Wiley MCQs for all modules. Now I’m working on Sampling, and I feel lost, and doing terribly on the MCQs. What topics in sampling should I focus on? Any advice for this module is appreciated!

REG 11/28/11 - 88
BEC 04/04/12 - 88
FAR 07/23/12 - 90
AUD 11/2012 - 92

Yaeger/Wiley

[Anonymous]

Focus on

Sampling used as substantive tests ($ balance testing)

Variable

Probability Proportionate to Size Sampling (no std dev, easy to design, smaller sample)

Relationships to Sample Size:

Direct = Expected misstatement, Standard Deviation, Assessed lvl of risk (rmm), Variance

Inverse = Tolerable misstatement, Acceptable lvl of risk (audit risk, incorrect acceptance/rejection)

Variable sampling plans to estimate true population value

Mean per unit (MPU) = avg sample value $ x # of items in population – Does NOT req book value (BV)

Ratio Estimation = (Audited TV/Audited BV) x Total BV of population

Difference Estimation = ((Audited BV – Audited TV) / sample size) x Population

Attirbute Sampling (Testing of controls – existence of error needs to be verified or debunked – yes/no questions)

Req. audit trail to be useful

Relationships to sample size

Direct = Expected error rate (deviation means error)

Inverse = Risk of assessing control risk to low, Tolerable deviation rate

Evaluating Sample Results

in order to rely on controls

Sample Error Rate + Allowance for Sampling Risk < = Tolerable deviation

If SER + AER exceeds TER than do not rely on controls and modify the NET of substantive tests

[jeff]

I believe Audit Sampling is one of the freebies for AUD…

https://www.another71.com/cpa-exam-study-plan/

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[StellaFL]

Thanks!

REG 11/28/11 - 88
BEC 04/04/12 - 88
FAR 07/23/12 - 90
AUD 11/2012 - 92

Yaeger/Wiley

[Anonymous]

Study according to Brent's note which is an amazing one :x. And stick to MCQs, if you do it wrongly at the first time, it's totally fine. Just REDO and REDO, you'll finally get it. I felt the same last week. I couldn't really get it when I read the textbook. So I went through the MCQ first, and then read the text, come back to do MCQ. It's much easier and doable second time. Redo it 3rd time and now I'm totally comfortable with it. Just 3-4 hours, you'll be fine :D.

[Author]

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