Auditing Dis1

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School
Houston Community College **We aren't endorsed by this school
Course
PSYC 321
Subject
Accounting
Date
Nov 9, 2023
Pages
3
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1 Auditing Disc. Post Students' Name Institution Instructor Course Date
2 Reply 1 For credit check control, I agree that attribute sampling is more trustworthy. Using attribute sampling, for example, the auditor may determine if each transaction is full and correct in terms of item description, number, price, and total amounts ( Westland ;& Christopher Westland, 2020). This enables the auditor to make better informed judgements regarding the population's correctness without having to analyze every transaction. Yet, monetary unit sampling offers benefits of its own. It guarantees that all major transactions are investigated, providing the auditor with more assurance. What additional benefits can monetary unit sampling provide? Reply 2 I agree that attribute sampling helps the auditor to obtain insight into the population's characteristics, such as data accuracy, which may aid in identifying any possible disparities. Moreover, since it removes the requirement to sample based on dollar quantities, attribute sampling may be more efficient than monetary unit sampling ( Westland ;& Christopher Westland, 2020). This may assist to shorten the time and resources required to perform the audit. One possible disadvantage of attribute sampling is that it takes more knowledge and expertise to conduct successfully. Is there anything more about attribute sampling that should be considered? Reply 3 I agree that MSU is a more accurate statistical sampling strategy for populations with low error rates. Yet, I feel that attribute sampling may still be useful in certain situations. For example, if the population has a high incidence of misstatement, attribute sampling, because of its capacity to assess the operational performance of internal controls, may be more successful in identifying misstatements. What are the additional benefits of attribute sampling versus MSU?
3 Reply 4 I agree with the response that attribute sampling would be more appropriate for auditing a company's credit check control for client orders, since this has more to do with the company's processes and internal control than it does with monetary worth. It is crucial to note, however, that monetary unit sampling may still be valuable in this case; it may be able to give insight into how much money the firm has lost as a result of consumers failing to pay on time. This data may be used by auditors to determine if the company's credit check measures are successful and whether they need to be strengthened. Have you ever been in a scenario where monetary unit sampling provided useful information? Reply 5 I agree that credit check control enables the auditor to determine if a transaction has the appropriate qualities or attributes, such as the correct amount or the correct customer. The auditor may also analyze the efficacy of the company's internal controls using this approach. For example, the auditor might examine if the customer's credit limit is being met and whether the right payment conditions are being provided. Generally, attribute sampling provides a more comprehensive evaluation than monetary unit sampling ( Westland ;& Christopher Westland, 2020). Nevertheless, keep in mind that the sample size should be high enough to provide an accurate representative of the population. What additional ways do you believe may be utilized to evaluate the efficacy of an organization's internal controls? References Westland, J. C., & Christopher Westland, J. (2020). Design of Audit Programs. Audit Analytics: Data Science for the Accounting Profession , 139-160.
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