Test of Details
Accept-Reject, Targeted & Audit Sampling
What are the three test of details methods?
We plan our audit to identify material misstatements caused by these 2 items.
What are (1) Error & (2) Fraud?
The entire set of data from which a sample is selected and about which the auditor wishes to draw conclusions.
What is the population?
This is the first year the modern Olympics was held.
What is 1896?
Tests a particular attribute or characteristic rather than attempting to estimate the value of potential monetary misstatement in an account or population.
What is accept-reject testing?
This is the term for the amount below which potential audit adjustments are clearly trivial and need not be accumulated.
What is SUM de minimis?
The difference between a random and haphazard sample.
What is a random sample allows for all items in the population to have an equal chance of being selected whereas a haphazard sample is a judgmentally representative sample without relying on a truly random process or on a structured technique?
Hg is the chemical symbol of this element.
What is mercury?
Measure of the quantity of audit evidence.
What is sufficiency?
According to AS 1015.07, in order to be professionally skeptical, an auditor must be able to demonstrate these 3 key attributes.
What are (1) knowledge, (2) skill and (3) ability?
The three characteristics you can make targeted selections based on.
What are high (monetary) value, risk and unpredictable procedures?
These are the six colors on the original Rubik's cube.
What are red, white, orange, blue, green, and yellow?
Measure of the quality of audit evidence.
What is appropriateness?
The non-test of detail procedure that can give you substantive audit evidence.
What are substantive analytics?
In addition to population size, these factors determine the sample size for a non-statistical sampling test.
What are tolerable misstatement, estimated misstatement and desired level of evidence?
On the big screen, he played the Sheriff of Nottingham, Hans Gruber, and Professor Severus Snape.
Who is Alan Rickman?
This is what you need to consider over the remaining balance after targeted testing.
What is if the untested balance is > performance materiality, evaluate the remaining risk of material misstatement at the assertion level?
The 2 PwC assertions that address the risk “Is it all here?”
What are completeness and cutoff?
If you are performing an accept-reject test with a population >=200 items, low desired level of evidence and 0 tolerable exceptions, this is the number of selections you must test.
What are 16 selections?
Hippophobia is the fear of this.
What is horses?