Controlling audit risk
By: Donald Roberts
Contributors: University of Illinois at Urbana-Champaign. College of Commerce and Business Administration
Series: Faculty working papers -- no. 549; Faculty working papers -- no. 549.
Publisher: College of Commerce and Business Administration, University of Illinois at Urbana-Champaign
Published: 1979
Place of publication: [Urbana, Ill.]
Language: eng
Number of pages: 23
Subjects: Auditing
Description: "The objective of this paper is to illustrate how an auditor may use statistical sampling to help control the audit risk. The focus is on planning a significant area of audit interest such as the revenue cycle. Both statistical substantive tests of details and any required statistical tests of compliance may be designed so that the risk of failing to discover a material monetary error as well as the risk of overauditing may be limited to a tolerable level. In addition, by considering the extent of these tests at several levels of planned reliance on the system of internal accounting control, a least cost combination can be selected."
Notes: Includes bibliographical references (p. 23).