Statistical Sampling for Tests of Controls, Compliance & Fraud
What’s in it for you?
Learn how to take a representative sample of your population and project the results to the population so that you can make a powerful conclusion such as “I am 95% confident that controls are operating effectively…”. There’s no need to buy specialised software, we teach you how to do it in a proven freeware package! Are you taking a JUDGEMENT sample which is bigger than the statistical sample you could have taken, without the benefit of being able to make a powerful conclusion! You may be cheating yourself of your good efforts.
Earn 7 CPE hours
Why is this relevant?
Auditors should have a “controls and process” focus, thus ATTRIBUTE sampling (not dollar unit) is the correct method for statistical sampling of controls (according to the IIA, ISAs, AICPA et al.) Attribute sampling allows you to quantify risk, and research validates that if you do not drill-down on your risk assessment, your efforts will result in dramatic over-auditing.
If you haven’t implemented continuous controls monitoring and advanced data analytics, you still need to pull samples, so why not do it statistically and project the results to the population so that you can make a powerful conclusion.
What will you learn?
- Assess the staggering cost of audit evidence
- How to tie your sample size to audit risk
- Understand the basic building blocks of statistical sampling
- Understand the critical concepts for statistical sampling for tests of controls
- How to select the most efficient sampling technique
- How to perform four methods of attribute sampling – Fixed-Sample Approach (one step acceptance), Stop and Go Approach (two step acceptance), Discovery Sampling, Estimation Sampling.
- Guidance on the quantification of sampling variables
Who is training suitable for?
- All auditors (financial, compliance, operational, performance, efficiency, fraud, process, etc)
- Anyone who has to determine sample sizes and/or whether controls are operating effectively.