Question

After planning the sample, selecting the sample and performing the tests it is necessary to evaluate the results. This final stage requires the auditor to consider the qualitative aspects of the errors that were found and to project errors to the population and conclude on the audit test. Explain what is involved in these two final steps of sampling.

Answer 1

When auditor comes to a conclusion that , there is diffrence from pertinant procidue , then it shall give consideration to the qualitative aspects also which includes a) The nature and reason for such deviation is due to errors, missunderstanding of insturction or irregularities or mistake of anykind. and b) such deviation has direct nexus to the other audit procidures followed in such audit. If the auditor is of the view that sample results are not parallel to the planned assessed level of control risk for an assertion, then he may re-evaluate the nature, timing, and extent of substantive procedures based on revised consideration of the assessed level of control risk for the relevant financial statement assertions.