Respected Sir/Madam

Kindly give solution asap

Thread Starter

Harsha Vardhan

CA Inter

★ 8K+

14-Jul-20 20:39

Sampling means the selection and verification of a portion of accounting entries and records out of total similar data. It provides reasonable basis to the Auditor to conclude about the population. If, there is a satisfactory internal control system a lesser degree of reliability of sample result may be acceptable. However nature, size and materiality of transactions are the basis, which are kept by the Auditor in his mind for his own judgements for selecting a sample of entries to be checked. Normally, accounts having material impact and entries involving large amounts are checked thoroughly and balance entries are checked on at random basis. With respective to sample design Objective - reduce sampling risk to an acceptably low level & enable the Auditor to form an opinion about the genuinity of financial statements. Important points to consider -purpose of the audit procedures & characteristics of the population from the which the sample will be drawn. Method of selection - Random (select items for the sample in such a way that each sampling unit in the population has a chance of selection._

Sudha Reddy

CA Final

★ 20K+

15-Jul-20 12:47