Topic 1:

There is a considerable difference of opinion among auditing practitioners about the most appropriate method of audit sampling. Some believe the only appropriate method is statistical sampling. Others believe that because of the large number of judgements required in statistical sampling auditors may as well use judgmental sampling. Find an article in the KU library that discusses the use of sampling in auditing. Based on the article and readings in your textbook which side of this debate do you agree with, and why?

Topic 2:

An employee for the city of Chicago, Illinois was fired after city officials discovered that he had used his access to city computers to cancel his $300 water bill. An investigation revealed that he had been doing this for a long period of time thereby embezzling a large amount of money from the city of Chicago. He was able to conceal the embezzlement for so long because the amount embezzled always fell within a 2% error factor used by the auditors. What weaknesses existed in the audit approach? How could the audit plan be improved? What internal control weaknesses were present in the system? Should the auditors have discovered this fraud earlier?

Answer rating: 100% (QA)

Topic 1 Title Audit Sampling in Accounting Research A Review and Synthesis Authors Robert Libby John Libby and Dale L Goodhue Journal Journal of Accounting Literature Year 2007 This article discusses ... View the full answer