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Aditional procedures and Anamoly
Auditing
mam, i could not grasp what exactly the additional procedures and anamoly are. i request, please explain. [Video Time Stamp: 00:18] Video Details ------------- P5 - Auditing and Ethics Audit Evidence - SA 530 #19. Evaluation of misstatement
Answers (2)
When your sample shows something suspicious or unexpected you cannot rely on the sample alone ,you need to do more checking. That “more checking” is called additional audit procedures. Like Increasing the sample size , Checking 100% of items in the problematic area For anamoly you can understand with an example Out of 50 invoices tested, 1 invoice had a wrong amount because the staff typed 7 instead of 1 (manual typing mistake). Everything else is correct. This is a one-time error and hence anomaly. BUT the auditor must still: • Discuss with management • Understand why it happened • Ensure it is truly rare and not a pattern • Still project other misstatements on the population These are additional procedures .
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