Performing Effect. & Efficient Audit Sampling & Analytical Proc. [EEA4]

Full Description

Performing Effective & Efficient Audit Sampling & Analytical Procedures (EEA4)

July 9th, 2025 / 8:30 am 12:00 pm

The Megan Room
6591 A Street
Anchorage, AK 99518

When performing an audit, an auditor bases their opinion about whether the financial statements are free from material misstatement on a variety of tests on the underlying account balances and classes of transactions. Some balances, such as debt or cash, may be tested 100 percent, but more commonly the auditor will use sampling to test a subset of the population to obtain sufficient evidence to support the opinion. The auditor will also use sampling when testing control activities to conclude on the effectiveness of the controls. In this course, we will discuss the relevant sampling guidance provided by AU-C 530 and recently updated sampling guidance for the audits of public companies found in PCAOB AS 2315: Audit Sampling. For other account balances and transactions, auditors may choose to perform analytical procedures as substantive tests instead of, or alongside, sampling techniques. It is important to properly design and perform analytical procedures to ensure an effective and efficient audit engagement. This course will provide detailed guidance and methods for performing these analytical techniques and explore the different sampling applications used in a financial statement/compliance audit.

Major Topics:
- Types of sampling and the differences in sampling risk and nonsampling
- PCAOB AS 2315: Audit Sampling, and AU-C 530: Audit Sampling
- Attribute testing for tests of controls and compliance
- Variable sampling for substantive assurance
- Differentiating statistical and nonstatistical sampling approaches
- Determining sample sizes in a compliance audit
- Performing preliminary analytical procedures as risk assessment procedures
- Performing final analytical procedures to assess the conclusions reached during the audit and evaluate the overall financial statement presentation
- When to use substantive analytical procedures for efficiency and effectiveness
- Establishing expectations and setting a threshold for substantive analytical procedures
- Following up on differences from expectations
- Concluding on substantive analytical procedures

Learning Objectives:
- Discuss the professional requirements related to sampling applications
-Differentiate attribute testing for tests of controls or compliance from variable sampling for substantive testing
- Explain special considerations related to internal control and compliance testing in a Single or Program-Specific Audit
-- Performing effective preliminary analytical procedures in the risk assessment process
--Performing a final overall analysis to assess the conclusions reached during the audit and evaluate the overall financial statement presentation
-- Planning and performing effective and efficient substantive analytical procedures
--Concluding on analytical procedures

Designed For: Auditors of all levels

CPE Credits: 4, Auditing

Level of Knowledge: Intermediate

Prerequisite: Prior experience on private or public company audit engagements

Acronym: EEA4

Discussion Leader: Randy Milligan, CPA

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