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Overview of Audit Sampling | |
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Nonstatistical and Statistical Audit Sampling | |
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Types of Statistical Sampling Plans | |
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Historical Developments of Statistical Sampling in Auditing | |
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What Are the Advantages of Statistical Sampling? | |
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The Risk of Sampling | |
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What Are Sampling and Nonsampling Errors? | |
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Statistical Sampling and Professional Judgment | |
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Relationship of Statistical Sampling to Auditing Standards | |
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Chapter Organization | |
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Is Sampling Involved? | |
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Selecting a Representative Sample | |
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Definition of Random Sample, Population, and Sampling Frame | |
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Sampling with or without Replacement | |
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Unexamined Sample Items | |
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Random-Number Tables | |
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Using a Random-Number Table | |
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Computer-Generated Random Numbers | |
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Systematic Selection | |
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Random Systematic Selection | |
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Probability-Proportional-to-Size Selection | |
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Stratified Selection | |
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Haphazard Selection for Nonstatistical Sampling | |
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Summary | |
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Selecting a Sample | |
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Adams Supply Company | |
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Attribute Sampling | |
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Attribute Sampling Plans | |
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Attribute Sampling and the Independent Auditor's Assessment of Control Risk | |
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Planning Considerations for Test of Controls | |
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Attribute and Deviations Conditions | |
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Population Definition | |
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Judgment in a Statistical Test of Controls | |
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Setting Risk of Assessing Control Risk Too Low (Reliability Level) | |
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Tolerable Rate (Upper Precision Limit) | |
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Fixed-Sample-Size Attribute Sampling | |
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Sequential (Stop-or-Go) Attribute Sampling | |
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Qualitative Analysis in Attribute Sampling Applications | |
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Illustrative Attribute Sampling Application | |
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Discovery Sampling | |
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Relating Attribute Sampling Results to Monetary Misstatement | |
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Summary | |
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Millar Company, Inc. | |
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EFT, Inc. | |
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Tech Producers, Inc. | |
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Client, Inc. | |
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Lewis and Foot, CPAs | |
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CPE Associates | |
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Taylor and Sons, Inc. | |
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Becker and Warren | |
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Dalton Stationery, Inc. | |
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Using Variable Sampling for Accounting Estimation | |
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Precision and Reliability | |
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A Review of Selected Statistical Concepts | |
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What Is Accounting Estimation? | |
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Unstratified Mean Per Unit | |
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Steps in Applying Unstratified Mean Per Unit | |
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Demonstration of Unstratified Mean Per Unit | |
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Stratified Mean Per Unit | |
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Steps in Applying Stratified Mean Per Unit | |
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Difference Estimation | |
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Steps in Applying Unstratified Difference Estimation | |
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Ratio Estimation | |
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Summary | |
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Empress Cosmetique Case | |
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Stratified Sampling, Inc. | |
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Foot, Tick, and Tie, CPAs | |
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Ace Corporation | |
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Catalog Sales | |
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Sunnytime Snack Company | |
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Using Variable Sampling for Audit Hypothesis Testing | |
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Sampling Risk and Audit Sampling | |
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Audit Risk, Materiality, and Substantive Audit Tests | |
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Tolerable Misstatement | |
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The Audit Hypothesis Model | |
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Demonstration of the Audit Hypothesis Model | |
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Proposing a Statistical Adjustment | |
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Summary | |
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Supplementary Topic: Using Audit Sampling for Compliance Auditing | |
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Blumenthal, Inc. | |
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Statistical, Inc. | |
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Draper, Inc. | |
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Fairview Publishing Company | |
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Accounts Receivable, Inc. | |
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AHT, Inc. | |
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Smith, Inc. | |
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Microtext Corporation and Industrial Supply Company | |
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Probability-Proportional-to-Size Sampling | |
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Objectives and Assumptions of PPS Sampling | |
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Advantages and Disadvantages of Using PPS Sampling | |
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Basic Description of PPS Sampling | |
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Evaluation Based on the Poisson Probability Distribution | |
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PPS Sampling for Overstatements | |
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Sampling Risk and PPS Sampling | |
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Determining Tolerable Misstatement Using PPS Sampling | |
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Determining the PPS Sample Size | |
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PPS Sampling for Overstatements and Understatements | |
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PPS Sampling for Attributes | |
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Summary | |
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Clip Joint, Inc. | |
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Roll Tide | |
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Wagner's Appliance Company | |
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Bell and Tyler, Inc. | |
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Carter and Warren, Inc. | |
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Nonstatistical Audit Sampling | |
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How Does Statistical Sampling Differ from Nonstatistical Sampling? | |
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Why Use Nonstatistical Audit Sampling? | |
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What Is a "Formal" Nonstatistical Sampling Plan? | |
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Why Use a Formal Nonstatistical Sampling Approach? | |
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Illustration of a Formal Approach to Nonstatistical Sampling | |
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Use of Nonstatistical Sampling for Tests of Controls | |
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Summary | |
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Nonstatistical, Inc. | |
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Landi Corporation | |
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Ryan Corporation | |
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Calculation Worksheets | |
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List of Equations | |
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SAS No. 39--Audit Sampling (AU 350 As Amended) | |
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Audit Sampling: Auditing Interpretations of Section 350 | |
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Index | |