Friday, November 6, 2020
12:00 – 1:30 pm (Eastern Time)
11:00 – 12:30 pm (Central Time)
10:00 – 11:30 am (Mountain Time)
9:00 – 10:30 am (Pacific Time)
This timely and critical bank auditor training on proper statistical sampling techniques for bank auditors will:
- Explain valid sampling
- Show how to use various sampling approaches
- Explain when to use the different types of sampling
- Show that sampling is not difficult
- Show that sampling is needed
- Show that sampling may even reduce the quantity of audit evidence needed by the auditor
- Discuss and explain common sampling terms
The focus will be on the use of sampling by auditors that help them to draw a conclusion about whatever it is they want to say about a population of data. Generally, the auditor wants to make one of the following statements in a confident and valid fashion:
- There is reasonable assurance that certain controls do not “break down” too often.
- There is reasonable assurance that a population of dollar balances or transaction amounts are not materially misstated.
To support this, attendees to this bank auditor training will learn the following:
- Sampling is inherent in the audit process.
- When examining evidence, the auditor’s normal pattern is as follows:
- Identify a population or universe
- Select items (sample) from the population
- Examine the selected items
- Draw a conclusion about the population based on the sample examined
- Audit sampling is the application of an audit procedure to less than 100% of the items in the population. It is rare for the auditor to examine 100% of the evidence that supports a population characteristic.
- The population is usually an account balance or a class of transactions.
- The auditor is interested in some characteristic of interest (e.g. the balance, the # of approvals, the # of deviations).
- Sampling can be statistical – based on probabilities
- Sampling can be non statistical – based on professional judgement.
- Items in a population that need special treatment (material items); should be examined 100%. Other items should be sampled.
As a result of this training, more powerful and statistically sound opinions will be the take away for all auditors who opine on both internal controls and financial balances and transactions. While most auditors use judgmental sampling, this training allows auditors to consider statistical sampling. It shows how statistical sampling isn’t the difficult task many perceive it to be and gives attendees an excellent opportunity to change to a statistical sampling approach for more powerful, supportable auditor statements or opinions.
Paul J. Sanchez, CPA, CBA, CFSA conducts a CPA practice in Port Washington, New York. He is also the owner of Professional Service Associates (PSA), a consulting and professional training and development business servicing corporate clients (auditors, controllers, etc.), CPA firms, professional associations and others. He was an assistant professor at Long Island University – C.W. Post Campus as well as an adjunct lecturer at City University of New York. Prior to starting PSA, he was the Vice President-Professional Development for the Audit Division of a regional bank and Director of Professional Practices and Vice President of a money-center bank, where he directed the professional practice development and training for internal auditors.
1.5 CPE Credits & 1.8 AAP Credits