Performing Effective and Efficient Audit Sampling and Analytical Procedures

Overview

When performing an audit, an auditor bases their opinion about whether the financial statements are free from material misstatement on a variety of tests on the underlying account balances and classes of transactions. Some balances, such as debt or cash, may be tested 100 percent, but more commonly the auditor will use sampling to test a subset of the population to obtain sufficient evidence to support the opinion. The auditor will also use sampling when testing control activities to conclude on the effectiveness of the controls. For other account balances and transactions, auditors may choose to perform analytical procedures as substantive tests instead of, or alongside, sampling techniques. It is important to properly design and perform analytical procedures to ensure an effective and efficient audit engagement. This course will provide detailed guidance and methods for performing these analytical techniques and explore the different sampling applications used in a financial statement/compliance audit

Designed For

Auditors of all levels

Major Topics

• Types of sampling and sampling risk
• Attribute testing for tests of controls and compliance
• Variable sampling for substantive assurance
• Differentiating statistical and nonstatistical sampling approaches
• Determining sample sizes in a compliance audit
• Preliminary analytical procedures as risk assessment procedures
• Performing final analytical procedures to assess the conclusions reached during the audit and evaluate the overall financial statement presentation
• When to use substantive analytical procedures for efficiency and effectiveness
• Establishing expectations for substantive analytical procedures
• Setting a threshold for differences
• Following up on differences from expectations
• Concluding on substantive analytical procedures

Learning Objectives

• Discuss the professional requirements related to sampling applications
• Differentiate attribute testing for tests of controls or compliance from variable sampling for substantive testing
• Explain special considerations related to internal control and compliance testing in a Single or Program-Specific Audit
  • Performing effective preliminary analytical procedures in the risk assessment process
  • Performing a final overall analysis to assess the conclusions reached during the audit and evaluate the overall financial statement presentation
  • Planning and performing effective and efficient substantive analytical procedures
  • Concluding on analytical procedures

Prerequisites

Prior experience on private or public company audit engagements

Advanced Preparation

None

Level of Knowledge

ntermediate

Instructional Delivery Method

Group Internet Based

CPE Credit

Participants will earn 4.0 CPE credits

Field of Study

Auditing (4)

Registration Requirement

Pre-registration is required for this event. To register, please visit our website at tx.cpa or contact our office at 800.428.0272. To receive the full CPE credit hours, you must be logged in and engaged for the duration of the program. Late arrivals and/or early departures will be captured by the submission of participant codes within the attendance monitoring application within the webinar broadcasting application.

Refunds and Cancellations

Registration changes can be made by calling 800-428-0272 or 972-687-8500 (option 2) or by emailing learning@tx.cpa. No shows forfeit the entire registration fee.

Cancellations for in-person conferences and events received at least 10 business days prior to the start of the event are eligible for a full refund. Cancellations received less than 10 business days prior to the start of the program are subject to a 50% cancellation fee due to facility, food and beverage fees being incurred.

Cancellations for webinars, webcasts, and online programs received at least five business days prior to the start of the program will be eligible for a full refund. Cancellations received less than five business days in advance of the program are subject to a 25% cancellation fee.

The Texas Society of CPAs is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of Continuing Professional Education (CPE) on the National Registry of CPE Sponsors. Boards of Accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.