This CPE course can be purchased individually or as part of the Audit Staff Essentials - Experienced Staff/New In-Charge staff training bundle.
In this CPE course, we will examine the relationship of the substantive sampling application to the overall audit strategy as well as to the overall objective of performing an audit with a low risk that an undetected material misstatement in the financial statements remains. Regardless of the substantive audit sampling techniques used, there are common elements of relating the test results to the auditing standards requirements that need to be understood.
The auditor has various reporting responsibilities under AU-C section 260, The Auditor's Communication With Those Charged With Governance (AICPA, Professional Standards), and AU-C section 265, Communicating Internal Control Matters Identified in an Audit (AICPA, Professional Standards), that may relate to substantive sample results. These requirements will be reviewed here to ensure that they are understood in the context of substantive audit sampling.