The topics will be covered in the following sequence:
Materiality
- How to calculate materiality.
- Different approaches to calculating materiality.
- Documenting the professional judgement used to choose the level of
- materiality.
- Survey data from the Regulator on the methods used in the larger firms.
- Calculating and recording performance materiality.
- Using materiality to plan and direct the performance of the audit.
Sampling
- The different methods of sampling.
- Using statistical sampling.
- Sample sizes for tests of controls.
- Using judgemental sampling.
- Uding AR and data analytics to reduce sample sizes.
- Sampling selection using haphazard or judgement rather than random.
- Sampling.
- Summarising, concluding and recording the sampling.
- Survey data from the FRC on the methods used in the larger firms.
