Chapter 14: Audit Sampling for Tests of Controls and substantive Tests of transactions Ob jectives After studying this chapter, you should be able to 1. Explain the concept of representative sampling. 2. Distinguish between statistical and nonstatistical sampling nd between probabilistic and nonprobabilistic sample selection 3. Select representative samples. 4. Define and describe audit sampling for exception rates. 5. Use nonstatistical sampling in tests of controls and substantive tests of transactions 6. Define and describe attributes sampling and a sampling distribution 7. Use attributes sampling in tests of controls and substantive tests of transactions 8. Apply sampling concepts and me thodology to the audit plan for the sales and collectior Chapter 15: Completing the Tests in the Sales and collection Cycle: Accounts receivable After studying this chapter, you should be able to: 1. Describe the me thodology for designing tests of details of balances using the audit risk model. 2. Design and perform analytical procedures for accounts in the sales and collection cycle 3. Design and perform tests of details of balances for accounts receivable for each balance-related audit objective 4. obtain and evaluate Ints receivable 5. Design audit procedures for the audit of accounts receivable, using an evidence planning worksheet as a guideChapter 14: Audit Sampling for Tests of Controls and Substantive Tests of Transactions Objectives After studying this chapter, you should be able to: 1. Explain the concept of representative sampling. 2. Distinguish between statistical and nonstatistical sampling and between probabilistic an d nonprobabilistic sample selection. 3. Select representative samples. 4. Define and describe audit sampling for exception rates. 5. Use nonstatistical sampling in tests of controls and substantive tests of transactions. 6. Define and describe attributes sampling and a sampling distribution. 7. Use attributes sampling in tests of controls and substantive tests of transactions. 8. Apply sampling concepts and methodology to the audit plan for the sales and collection cycle. Chapter 15: Completing the Tests in th e Sales and Collection Cycle: Accounts Receivable Objectives After studying this chapter, you should be able to: 1. Describe the methodology for designing tests of details of balances using the audit risk model. 2. Design and perform analytical procedures for accounts in the sales and collection cycle. 3. Design and perform tests of details of balances for accounts receivable for each balance-related audit objective. 4. Obtain and evaluate accounts receivable confirmations. 5. Design audit procedures for the audit of accounts receivable, using an evidence planning worksheet as a guide