Activity Based Risk Evaluation Model of Auditing

AUDIT TESTING AND SAMPLING

Audit testing plans

An audit testing plan is a description in the audit working papers of the items in the population (or stratum) that are to be selected for examination. This requires consideration of:

• the objective of the audit procedure.
• the auditor's description of what constitutes an exception.
• identification of the population from which the sample is to be taken and the data set (items) that make up that population.
• the need for and basis upon which any key items are to be selected for examination.
• the risk of a significant exception.
• the need for and basis of any stratification of the population.
• the determination of the sample size.
• evaluation of the tolerable level of exceptions.

Audit testing procedures, index page

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