100% testing vs. sampling.


Statements made in a recent article, "Take My Manual Audit, Please" (JofA, June98, page 33), could set a dangerous precedent for auditors. The author wrote that "audit software lends itself to conducting 100% testing—not just sampling—of client data" and went on to describe the benefits of 100% testing.

Replacing sampling procedures with 100% testing of all data could raise expectations for the audit to a level that I think is unacceptable.

Published articles could be a source of authoritative support, and, if the author's views are followed, this could elevate testing standards to a level of practice that practitioners may not choose, or may be unable, to follow.

Our standard audit report tells the statement user, "An audit includes examining, on a test basis." The word test is intended to denote sampling rather than 100% testing. If the standards are to be changed, let the standard setters do it.

Charles Chazen, CPA
Los Angeles

SPONSORED REPORT

Keeping client information safe in an age of scams and security threats

A look at the Dirty Dozen tax scams and ways to protect taxpayer information.

TECHNOLOGY Q&A

How to create maps in Excel 2016

Microsoft Excel 2016 has two new mapping capabilities. J. Carlton Collins, CPA, demonstrates how to make masterful 2D and 3D maps in Excel 2016.

QUIZ

News quiz: IRS enforcement, a hot job, and audit value

The IRS’s 2016 Data Book, a “hot job” of particular interest at this time of year, and insight into how executive and audit committees view the insights from financial statement audits received attention recently. See how much you know with this short quiz.