AUD, Sampling. What is important?

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  • #174839
    StellaFL
    Member

    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

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  • #382635
    Anonymous
    Inactive

    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

    #382636
    jeff
    Keymaster

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

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

    #382637
    StellaFL
    Member

    Thanks!

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

    Yaeger/Wiley

    #382638
    Anonymous
    Inactive

    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.

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