CPA Auditing and Attestation (AUD)

Certified Public Accountant Auditing and Attestation examination.

Advanced Topics

Audit Sampling & Analytical Procedures

Why Sampling?

Auditors rarely check every transaction. Instead, they use sampling to draw conclusions about a population.

Sampling Methods

  • Statistical Sampling: Uses math to select items and measure risk.
  • Nonstatistical Sampling: Based on auditor's judgment.

Analytical Procedures

These involve comparing financial data to expectations:

  • Trend analysis
  • Ratio analysis
  • Reasonableness tests

Application

Sampling and analytics help auditors focus efforts, identify anomalies, and gather evidence efficiently.

Examples

  • A CPA selects a random sample of payroll records for testing.

  • An auditor notices a spike in expenses using trend analysis and investigates further.

In a Nutshell

Auditors use sampling and analytics to test financial data efficiently.

Audit Sampling & Analytical Procedures - CPA Auditing and Attestation (AUD) Content | Practice Hub