Day: December 21, 2021

Sample should be selected in such a manner that it is representative of the population from which the sample is being selected. It will necessitate that each item in the population has an equal chance of being included in the Read More …

As per AAS 15, “Audit Sampling”, the auditor should select sample items in such a way that the sample can be expected to be representative of the population. This requires that all items in the population have an opportunity of Read More …

Generally, a large manufacturing concern is associated with a large volume of transactions. Also, the nature of the transactions is determined by the nature of the business. For example, one may find numerous purchases of raw materials, stores, spares, etc.; Read More …

Very often we come across this term when an audit is conducted on the basis of a part checking. This, it is said, owes its origin to the statistical theory of sampling. The auditor according to his best judgment, having Read More …

No conscious effort in human society is divested of economic considerations and auditing is no exception. There is a growing realisation that the traditional approach to audit is economically wasteful because all efforts are directed to check all transactions without Read More …

At the individual audit level, however, it shall be absolutely necessary that the work delegated to assistants is directed, supervised and reviewed in a proper manner. Direction: Direction involves informing assistants of their responsibilities and the objectives of the procedures Read More …