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Tip 3: Leverage the Intelligent Sampler for Tests of Details

Article author
Jonathon Plowman-Samson
  • Updated

How does this add value to your audit? 

  • As noted above for journal entries, the Intelligent Sampler can be used to stratify your sample selections towards transactions flagged as either High or Medium risk, i.e., those transactions that have failed/triggered multiple Control Point tests. This can be very useful for substantive testing of certain balances or classes of transactions, as a mechanism for sample selection that focuses on potentially anomalous entries in the ledger as opposed to a purely random sample.
  • An Audit Plan can then be generated with one click into Excel, seeded with the relevant transactional data, to then form the basis for your working paper to document the results of your substantive testing and verification, saving you manual work!
  • Pro tip: the “Reversed” Control Point can be used to identify whether any transactions initially selected for sampling were subsequently reversed and is therefore a false positive and required to be replaced. This avoids unnecessary back-and-forth with the client!
  • Some examples of balances and classes of transactions where Intelligent Sampler could be effective for sample selection:Occurrence and accuracy of operating expensesExistence and valuation of fixed asset additionsExistence and valuation of inventory purchases
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