The effectiveness of audit sampling methods recommended to small and medium practices in guides published by audit regulators

2018 ◽  
Vol 32 (2-3) ◽  
pp. 109-131
Author(s):  
Elmarie Swanepoel
2015 ◽  
Vol 9 (2) ◽  
pp. P7-P18 ◽  
Author(s):  
Brant E. Christensen ◽  
Randal J. Elder ◽  
Steven M. Glover

SUMMARY Changes in the audit profession after Sarbanes-Oxley, including mandatory audits of internal control over financial reporting and PCAOB oversight and inspection of audit work, have potentially changed the nature and extent of audit sampling in the largest accounting firms. In our study, “Behind the Numbers: Insights into Large Audit Firm Sampling Policies” (Christensen, Elder, and Glover 2015), we administered an extensive, open-ended survey to the national offices of the Big 4 and two other international accounting firms regarding their firm's audit sampling policies. We find variation among the largest firms' policies in their use of different sampling methods and in inputs used in the sampling applications that could result in different sample sizes. We also provide evidence of some of the sampling topics firms find most problematic, as well as changes to firms' policies regarding revenue testing due to PCAOB inspections. Our evidence provides important insights into current sampling policies, which may be helpful to audit firms in evaluating their sampling inputs and overall sampling approaches.


2011 ◽  
Vol 19 (1) ◽  
Author(s):  
David L. Gilbertson ◽  
Terri L. Herron

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt; mso-pagination: none;"><span style="font-family: &quot;Times New Roman&quot;,&quot;serif&quot;; font-size: 10pt;">Generally accepted auditing standards permit auditors to apply both statistical and nonstatistical sampling techniques in obtaining sufficient, competent evidential matter.<span style="mso-spacerun: yes;">&nbsp; </span>However, several recent studies have shown that statistical sampling procedures have nearly disappeared from practice. Despite this trend and the heightened anxiety about professional liability, no studies to date have directly tested the potential implications of sampling method on jurors verdicts, damage awards, or sample size expectations.<span style="mso-spacerun: yes;">&nbsp; </span>In this study we investigate the effect of sampling method on jurors&rsquo; judgments in auditor negligence trials.<span style="mso-spacerun: yes;">&nbsp; </span>Overall, in a case where auditors were alleged to have used an insufficient sample size, the sampling method did not affect the likelihood of a &ldquo;guilty of negligence&rdquo; verdict.<span style="mso-spacerun: yes;">&nbsp; </span>However, as predicted, damage awards were significantly higher when nonstatistical sampling was used compared with statistical sampling.<span style="mso-spacerun: yes;">&nbsp; </span>Exploratory analysis revealed that subjects voting &ldquo;guilty of negligence&rdquo; would require the auditors to examine over 17% of the population (compared with the 1% examined) in order to change their verdict to &ldquo;not guilty of negligence.&rdquo;<span style="mso-spacerun: yes;">&nbsp; </span>These findings have troubling implications for auditors employing sampling techniques.</span></p>


Author(s):  
Badrinath Roysam ◽  
Hakan Ancin ◽  
Douglas E. Becker ◽  
Robert W. Mackin ◽  
Matthew M. Chestnut ◽  
...  

This paper summarizes recent advances made by this group in the automated three-dimensional (3-D) image analysis of cytological specimens that are much thicker than the depth of field, and much wider than the field of view of the microscope. The imaging of thick samples is motivated by the need to sample large volumes of tissue rapidly, make more accurate measurements than possible with 2-D sampling, and also to perform analysis in a manner that preserves the relative locations and 3-D structures of the cells. The motivation to study specimens much wider than the field of view arises when measurements and insights at the tissue, rather than the cell level are needed.The term “analysis” indicates a activities ranging from cell counting, neuron tracing, cell morphometry, measurement of tracers, through characterization of large populations of cells with regard to higher-level tissue organization by detecting patterns such as 3-D spatial clustering, the presence of subpopulations, and their relationships to each other. Of even more interest are changes in these parameters as a function of development, and as a reaction to external stimuli. There is a widespread need to measure structural changes in tissue caused by toxins, physiologic states, biochemicals, aging, development, and electrochemical or physical stimuli. These agents could affect the number of cells per unit volume of tissue, cell volume and shape, and cause structural changes in individual cells, inter-connections, or subtle changes in higher-level tissue architecture. It is important to process large intact volumes of tissue to achieve adequate sampling and sensitivity to subtle changes. It is desirable to perform such studies rapidly, with utmost automation, and at minimal cost. Automated 3-D image analysis methods offer unique advantages and opportunities, without making simplifying assumptions of tissue uniformity, unlike random sampling methods such as stereology.12 Although stereological methods are known to be statistically unbiased, they may not be statistically efficient. Another disadvantage of sampling methods is the lack of full visual confirmation - an attractive feature of image analysis based methods.


2017 ◽  
Vol 24 (1) ◽  
pp. 35-53
Author(s):  
Sulastiningsih Sulastiningsih ◽  
Intan Ayu Candra

The purpose of this study is to prove: (1) Time pressure, locus of control, the action of supervision and materiality partially affect the premature termination of the audit procedures (2) Time pressure, locus of control, supervision and materiality simultaneously affect the premature termination on the audit procedures. This research was conducted in Public Accountant firm in Yogyakarta region of which total 12 samples of KAP, by distributing 105 questionnaires, and 57 questionnaires were returned (54%). 34 of the returned questionnaires can be processed (34%). The samples in this study were determined by using non-probability sampling, one of purposive sampling methods. Data analysis consisted of: (1) validity test, reliability test and classical assumption. The result showed that the instruments used are quite reliable and valid (2) multiple linear regression analysis. The results are (a) Some of independent variables partially affect premature termination of the audit procedure, while the action of supervision does not influence premature termination of audit procedures (b) All independent variables influence simultaneously to the premature termination of the audit procedures (c) All independent variables showed that as much as 55% it affects on premature termination of the audit procedures, the rest of it are influenced by other variables. (3) Friedman Test. The result shows that there are order of priority of audit procedures being terminated.


2000 ◽  
Author(s):  
Z. Bai ◽  
J. Zhang ◽  
G. Rhoads ◽  
P. Lioy ◽  
S. Tsai ◽  
...  
Keyword(s):  

1999 ◽  
Author(s):  
N. McCullough ◽  
L. Brosseau ◽  
C. Pilon ◽  
D. Vesley
Keyword(s):  

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