mpli Audit Sampling Steps stfenrcre ontrols and for Tests of details of balances of Transactions(see p 445) Plan the Sample Plan the sample 1. State the objectives of the audit tests. 1. State the objectives of the audit tests 2. Decide whether audit sampling applies. 2. Decide whether audit sampling applies. 3. Define misstatement conditions 3. Define attributes and exception 4. Define the population conditions 5. Define the sampling unit. 4. Define the population 6. Specify tolerable misstatement. 5. Define the sampling unit. 7. Specify acceptable risk of incorrect 6. Specify the tolerable exception rate acceptance 7. Specify acceptable risk of assessing 8. Estimate misstatements in the control risk too low population 8. Estimate the population exception rate 9. Determine the initial sample size 9. Determine the initial sample size Arens, Loeb becke: Auditing &/E C 2000 by Prentice Hall,Inc.Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. 1. State the objectives of the audit tests. 2. Decide whether audit sampling applies. 3. Define misstatement conditions. 4. Define the population. 5. Define the sampling unit. 6. Specify tolerable misstatement. 7. Specify acceptable risk of incorrect acceptance. 8. Estimate misstatements in the population. 9. Determine the initial sample size. Steps Plan the Sample 1. State the objectives of the audit tests. 2. Decide whether audit sampling applies. 3. Define attributes and exception conditions. 4. Define the population. 5. Define the sampling unit. 6. Specify the tolerable exception rate. 7. Specify acceptable risk of assessing control risk too low. 8. Estimate the population exception rate. 9. Determine the initial sample size. Plan the Sample Audit Sampling for Tests of Details of Balances Audit Sampling for Tests of Controls and Substantive Tests of Transactions (see p. 445)