auditsampling.docVIP

KPMG – BARENTS GROUP LLC 2001 NOVEMBER ADB CNAO AUDIT STANDARDS PROJECT Page  PAGE 6 of  NUMPAGES 6 AUDIT SAMPLING Standard oN AUDIt SAMPLING (DRAFT) Chapter One General Principles Article 1 This Standard is formulated in accordance with the Basic Government Auditing Standards of the People’s Republic of China in order to standardize the application of audit sampling methods by auditors, improve audit efficiency, reduce audit risks and ensure audit quality. Article 2 The term “audit sampling” mentioned herein refers to an audit technique applied by auditors when implementing audit procedures through which auditors select a certain number of samples from the population, conduct tests and review thereof and deduce features of the population on the basis of such tests and review. Such audit sampling can be either statistical or non-statistical. Article 3 Statistical sampling is a method of audit sampling that is designed according to the theory of probability and principles of mathematical statistics. Such sampling is capable of selecting samples scientifically and quantifying audit risks due to its tight procedural design and mathematical derivation. Article 4 Non-statistical sampling is also known as judgmental sampling. Such sampling is the same as statistical sampling in its basic procedures but depends on experienced judgement by auditors to select samples. Computation formulas and mathematical modules used in statistical sampling are not applicable to non-statistical sample design and evaluation of non-statistical sampling results. Article 5 Auditors should use their professional judgement when designing and selecting samples and evaluating sampling results. Where necessary, auditors should analyze relevant data with the assistance of information technology. Article 6 This Standard is not applicable when auditors are conducting detailed audit or selecting all items that are of special importance