I. CAS 500, 530 summaries of key concepts
II. Introduction to monetary-unit sampling (MUS) also called dollar-unit sampling (DUS) in North America
III. MUS mechanics: Sample Planning
IV. Giant Stores Case
V. MUS Mechanics: Sample Evaluation
VI. Some Statistical Theory
VII. Summary of Required Reading article: Hall et al.
VIII. Solutions to other class questions: EP 1 page 407 SB (10.53), EP 3 page 407 SB (10.55), and DC 1 pages 408-409 SB (10.59)
I. Summary of CAS 500, 530
A. CAS 500: Audit Evidence
This standard is also reviewed in Lecture Notes 5.
CAS 500: audit evidence
Comment: this standard is a review of intro audit concepts including sufficiency and appropriateness of evidence (A1-A6); audit procedures (substantive and tests of controls—A 10-A 25); relevance (A 27- A 30); reliability (A 31-51); and selecting items (A 52-56): 100% exam, selecting specific items, and audit sampling. The standard has a specialized appendix on reliance on actuaries for evidence.
CAS 500 is largely a summary of intro audit concepts. A52 identifies ways of selecting items:
1. Selecting all items (100% exam)
2. Selecting specific items; and
3. Audit sampling …show more content…
The most important for purposes of this class is the definition of key classic sampling concepts in paragraph 5: audit sampling, population, sampling risk, non-sampling risk, statistical sampling, an anomaly to identify unusual misstatements. Also stratification, tolerable misstatements, and tolerable rate of deviation (materiality for tests of controls is called the threshold rate—you can think of this as the amount of control deviations that would lead to a material (tolerable) misstatement. The auditor needs to evaluate all deviations quantitatively and