What factors go into deciding HOW MUCH EVIDENCE auditors should collect? ASA/ISA530 Sampling

[@hassnadarwish8723]

Your video's are so helpful. Thank you do much. i have a question about evaluation of the misstatements when using sampling. what should we do if the projected misstatement is so close to the tolerable error but not exceed it?

[@amandalovestoaudit]

A great question Hassna - I’d collect another sample and re-project

[@hassnadarwish8723]

@@amandalovestoaudit Thank you Amanda. i was actually arguing with my senior because in isa 530 they only mentioned when the misstatement exceeds the material misstatement and i sime cases because of the deadline we have such relief whwn we see that the misstatement is withinn the acceptable level.

[@sesiengxukumeshe7737]

Your videos are so helpful 🥺. Never really enjoyed auditing until I started watching your channel. You've made everything easier for me. Thank you!

[@amandalovestoaudit]

I am so glad they are helping you Sesi!

[@MyHomeIsTheHereafter]

Many thanks for this Amanda. A quick question. When I test for the recoverability of trade debtors, one of the procedures I perform is to select all material items plus few more (highest value) to reach a confidence of level of at least 60~70% as I think this is representative of the population. As per ISA 530, am I then wrong to ignore the remaining residual population and not sample from these even though my test is biased towards highest value debtors. Thank you.

[@amandalovestoaudit]

Hi Omar - a great question. It sounds like you’ve got fairly good coverage of the population based on your sample selection method. It is highly likely that any misstatements you may find in those lower $ transactions would be immaterial anyway 😊

[@MyHomeIsTheHereafter]

AmandaLovesToAudit thanks for the reply. Now I know what to tell the cold file reviewer! #CommercialVCompliance #

[@siddharthkulkarni5809]

Loved the video, very helpful. But I have been dealing with plenty of confusion with the portion regarding evaluation of sample results, specifically A22 of the explanatory material for para 15. The language is a bit hard to comprehend. In A22, it says that if the projected misstatement is greater than the tolerable misstatement, the sample does not provide a reasonable basis for making conclusions about the population. The logic here is a bit unclear to me. Does it imply that we have to extend the sample and recompute projected misstatement or simply that the objective of using audit sampling has not been achieved and that the given sample is not representative of the population?

[@kesava8020]

Where is that sample selection method explanation ma'am...🙏

[@anikiu3208]

Mam, How do I determine how many sampling I should perform in specific assurance engagement i.e. audit?

[@amandalovestoaudit]

Hi Anik - these videos will assist Introduction to sampling - kzbin.info/www/bejne/pqq9eWqfd7OliM0 Calculating sample sizes - kzbin.info/www/bejne/rZLSo3aag8t2i5I Example - kzbin.info/www/bejne/p2OQp6uhZbmWr5Y

[@samiaghbar9762]

Do you have videos for explaining when and why using the sample method, which you mentioned in the last minute in this video. Thanks

[@amandalovestoaudit]

Hi Sami! This is my full lecture on sampling kzbin.info/www/bejne/eqDMeIKmhZmhfJI

[@amandalovestoaudit]

Selecting the best population for your audit sampling kzbin.info/www/bejne/opatnmChachkhbM

[@amandalovestoaudit]

Projecting misstatements to the population kzbin.info/www/bejne/jZSqcmSwrreZoqs

[@renjietang2212]

cool

[@renjietang2212]

it is truly helpful

[@amandalovestoaudit]

Thanks!

[@aslimahahmad5768]

ISA 510?

[@amandalovestoaudit]

Good pickup - didn’t realize I’d missed it! On my to-do list ☺️

[@tobyskatefilms7262]

first!

[@amandalovestoaudit]

Thanks Toby! 🥇🥇🥇

[@Karrmohamed1998]

Thanks a lot man for the good work. Your videos are helpful.