The Standards for the Professional Practice of Internal Auditing require that ‘Internal auditors must base conclusions and engagement results on appropriate analyses and evaluations. Internal auditors develop and obtain documented approval of work programmes before commencing the internal audit engagement. The work programme includes methodologies to be used, such as technology-based audit and sampling techniques’.
Audit sampling is used to provide factual evidence and a reasonable basis to draw conclusions about a population from which a sample is selected. The internal auditor should design and select an audit sample, perform audit procedures and evaluate sample results to obtain sufficient, reliable, relevant and useful audit evidence to achieve the engagement’s objectives. Sufficient, in that the information is factual, adequate and convincing so that a prudent, informed person would reach the same conclusions as the auditor. Reliable, in that the information is the best attainable information through the use of appropriate engagement techniques. Relevant, in that the information supports engagement observations and recommendations and is consistent with the objectives for the engagement. Useful, in that the information helps provide assurance that the organisation will meet its goals.
This short learning programme provides an opportunity to learn about the pitfalls faced in selecting the most appropriate sampling methods, calculating sample size and creating an audit design that will provide the most information at the minimum cost. Topics covered include different methods of random sampling and non-random selection, adjusting for population size and resource constraints, how to combine results and extrapolate and what to report.
MSA Attendance based short learning programme
This short learning programme is appropriate for auditors, managers and executives working in both the public and private sectors.
Specific learning outcomes of this short learning programme are to: