ACCA AA Syllabus D. Audit Evidence - Misstatement or deviation - Notes 4 / 4
Tolerable misstatement looks at individually immaterial misstatements added together
The smaller the tolerable misstatement or rate of deviation, the greater the required sample size
Expected misstatement or rate of deviation
The higher the expected misstatement or rate of deviation, the greater the required sample size.
Performing audit procedures on the sample
If the auditor cannot use the procedure - then this is a misstatement/deviation
Investigate the nature and cause of any misstatements/deviations
Evaluate their effect
Previous
Methods of Sampling
Syllabus D. Audit Evidence
D3. Audit sampling and other means of testing
Next up
Receivables - The Assertions
Syllabus D. Audit Evidence
D4. The audit of specific items