Chapter 9, Problem 9.1RQ

To determine

Concept Introduction:

Audit sampling: sampling is the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their audit procedures. Sampling can be statistical or non statistical.

the list of statistical sampling application for substantive testing

Explanation of Solution

The list of statistical sampling application for substantive testing is the following:

Planning: planning is the first step of the statistical sampling in which auditors determine the objectives of testing and test the possible claim for the financial statement amount. The auditor plans about the population and sampling size that whether they required a large number of population and sample or small numbers. The auditor also plans about expected errors.

Performance: performance is the second step after planning, in which the auditor selects the sample item and performs the audit procedure.

Evaluation: evaluation is the last step, which requires the calculation and analysis of the whole project and misstatement so that the auditor concludes.