Sampling Strategies in Financial Statement Audits: Updated Guidance

Mastering AICPA Standards and Latest Sampling and Risk Guides to Devise a Sampling Methodology

Recording of a 110-minute CPE webinar with Q&A


Conducted on Thursday, July 20, 2017
Recorded event now available


This webinar will prepare audit specialists to select appropriate sampling techniques for financial statement audits. The panel will explain the rationale for and technical terms of generally accepted standards for sampling methodologies, based on AICPA accounting standards and guides and on professional practices.

Description

External auditors these days must stay up to date on sampling methodologies, as applied to examinations of clients’ internal controls or substantive details during financial statement audits. Several recent developments that directly affect sampling practices merit practitioners’ attention and study.

For example, within the AICPA recodification of standards, a new “performance materiality” concept was added to the new AU-C Section 320, and the “isolated exception” warning was dropped from SAS 107. Our webinar will provide a review of the AICPA’s updated guide on assessing risk in audits and any revisions on sampling keyed to the requirements in the new codification.

Best practices and insights from an experienced professional augment technical guidance when it comes to planning a sampling strategy, quantifying a right-sized sample under a given set of client circumstances, achieving the required level of evidence, and deciding what to do with sample results or errors.

Listen as our financial audit veterans lay out the framework to improve your use of sampling methodologies for financial statement audits.

Outline

  1. Impact of AICPA standards codification
    1. How new “performance materiality” concept affects documentation and sampling
    2. Responding to absence of “isolated exception” references
    3. Terminology changes
  2. Review of new AICPA sampling, risk assessment guides
  3. The audit risk model and its applicability
  4. Current sampling priorities and best practices
  5. Frequently faced issues

Benefits

The panel will review these and other key issues:

  • Understanding implications for audit sampling in the AICPA recodification of auditing standards
  • Developing best practices from the new AICPA sampling and risk assessment guides
  • Creating a well-planned sampling approach that follows the audit risk model
  • Identifying the proper size of a sample needed for a substantive details test or for an examination of internal controls
  • Extrapolating small and large errors to the sample population

Learning Objectives

After completing this course, you will be able to:

  • Discern best practices for alternative statistical and non-statistical sampling methodologies in conducting an audit of financial statements under AICPA standards and guidelines
  • Identify the proper size of a sample needed for a substantive details test or for an examination of internal controls
  • Determine how to extrapolate small and large errors from the data sample population

Faculty

Duane Reyhl, CPA, CGMA, Partner
Andrews Hooper Pavlik, Midland, Mich.

Mr. Reyhl has 35 years of auditing and financial reporting experience, including six years as the technical director for the Peer Review Program of the California Society of CPAs. He is the firm’s director of consulting, and leads audit, review, compilation, and peer review engagements for a variety of industries, including education, governmental entities, non-profit organizations, and employee benefit plans. He also performs fraud prevention and investigation services.

Gregory H. Soule, CPA, CISA, CISSP, CFE, Senior Manager
Andrews Hooper Pavlik, Auburn Hills, Mich.

Mr. Soule has a broad public accounting background which includes financial statement audits, operational and internal audits, IT audits, business consulting, IT security services, and fraud examinations. In addition, he has performed service organization control (SOC) examinations, network vulnerability assessments, social engineering, and disaster recovery consulting. His industry experience includes financial institutions, insurance companies, closely-held businesses, service organizations, governmental organizations, and manufacturers. He is a presenter and author for various professional organizations on topics including internal controls, accounting & auditing, fraud, and cybersecurity related subjects. In addition to being a CPA, Greg is a Certified Information Systems Auditor (CISA), a Certified Information Systems Security Professional (CISSP), and a Certified Fraud Examiner (CFE).


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Recorded Event

Includes full event recording plus handouts.

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Program Materials

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Program Materials

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Customer Reviews

The conference was technical, informative and presented at a good pace.

Krystal Ching

KMH

I liked the concentration on specific issues and examples.

Edita Rimalovsky

Komisar Brady & Co.

I purchased the conference a few minutes after it began and the customer service rep was very helpful and got me signed up and logged into the conference very quickly.

Joanna Johnston

Savas Greene & Company

I liked the fact that there was more than one person presenting the material. It's nice to hear multiple perspectives.

Matt Bristow

Cover & Rossiter

I appreciated the flow of the information offered and the ease at which I could follow the handouts.

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WISS & Company

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Accounting Advisory Board

Bill Allen

Partner

Making Auditors Proficient

Alicia Dias

Audit Manager

Brown/Armstrong

Richard H. Gesseck

Partner

CohnReznick

Neil Goldenberg

CFO Advisor

DecisionCFO

Greg Goller

Partner-in-Charge, Non-Profit Tax Practice

Grant Thornton

Lynford Graham, CPA

Professor of Accounting

Bentley University

Joe Kristan

Shareholder

Roth & Co. CPAs

Steven J. Luber

Senior Manager

PricewaterhouseCoopers

Gary O'Krent

Shareholder

Bluestein O'Krent & Bluestein

Curtis Reinhart

Partner

Ernst & Young

Celia Roady

Tax Partner

Morgan Lewis

Charles (Chip) Schweiger

Director

PKF Texas

Chris Stanz

Principal, Non-Profit and Government Practice

LarsonAllen

Alan Strand

Principal

Strand and Associates

Danielle Thompson

Director of Business Development

Insight Accounting Group

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