1. Audit Sampling
1.1. Deference between POPULATION, SAMPLE, TRANSACTION
1.1.1. Population
1.1.1.1. 100% of the transaction
1.1.2. Sample
1.1.2.1. range of the population, it's all about suffusion in terms of quantity and effectiveness in terms of quality.
1.1.3. Transaction
1.1.3.1. Component of the sample
1.2. Sample Selection
1.2.1. Statically Based
1.2.1.1. Non-Seasonal products
1.2.1.1.1. Random
1.2.1.1.2. Interval/ systematic
1.2.1.2. Seasonal Products
1.2.1.2.1. Cluster
1.2.2. Professional Judgement Based
1.2.2.1. Haphazard
1.2.2.1.1. Ignore all previous methods, and adopting a new one.
1.2.2.1.2. After understanding the company (IR)
1.2.2.1.3. Perception of the EP is different to the normal (other methods)
2. ICS
2.1. Internal Control Procedures
2.1.1. Definition of ICS
2.1.1.1. Controls on financial and non financial
2.1.1.2. established by SM
2.1.1.3. to achieve 3 things
2.1.1.3.1. Adherence the policies
2.1.1.3.2. Safeguarding the assets
2.1.1.3.3. Accuracy and completeness of the records
2.1.2. Achieving the aims of ICS
2.1.2.1. Preventive Controls
2.1.2.1.1. Propare segregation of duties
2.1.2.1.2. Effective system of authorizations
2.1.2.1.3. Effective physical controls
2.1.2.1.4. Propare documentation
2.1.2.2. Detective Controls
2.1.2.2.1. Independent checks
2.1.2.2.2. Propare documentation
2.2. Reliance on Internal Audit
2.2.1. Qualifications
2.2.1.1. refer back to CV
2.2.1.1.1. Academic
2.2.1.1.2. Professional
2.2.2. Objectivity
2.2.2.1. To measure the objectivity refer back to the organization structure.
2.2.2.1.1. If the IA report back to Audit committee it makes him more objective and trusted
2.2.3. Scope of work
2.2.3.1. Focusing on Financial and non-financial aspects