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.