What is the relationship between FSA and Sampling Worksheets?
The sample size worksheets from B.70 -
X.70, are linked to the Inherent Risk and Control
Risk ratings made in the FSA Worksheet.
Furthermore for an auditor this helps to
begin the calculation for their sample size worksheet.
1. Required Level of Assurance: The required level of
assurance reflects the level of confidence required for sampling which is
equated to 100% less the Audit Risk associated with the assertion.
2. Inherent Risk and Control Risk: Based on the
Reliability Factor Table these inherent and control risk factors represent
the quantitative level of risk from the risk assessment. The higher the
level of inherent / control risk then the lower the risk factor deducted
for sampling purpose. This will reflect from FSA.
3. Combined risk factor: The total of Inherent
Risk and Control Risk factor.
4. Other substantive tests: Under the Reliance, the auditor
needs to use their own professional judgement to determine the Other
Substantive Tests, the risk factor for Other Substantive Tests is an input
cell which an auditor can change the defaults anytime as they
require.
5. Expected Misstatement Factor: Using the risk factor, this
is calculated in relation with the performance materiality.
Note: If an auditor needs to create a
Sample Size worksheet which is not linked to the FSA Worksheet, they can use
the SAMP - New Substantive Sample Sizes
Worksheet workpaper which is found in the Audit System - Control
> Master Documents folder.
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