Statistical Sampling for Internal Auditors - Training - The Institute of Internal Auditors (IIA)
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Statistical Sampling for Internal Auditors

Your opportunity to...
  • Summarize introductory terminology and methodology related to statistical sampling
  • Employ random sampling techniques
  • Identify non-random sampling techniques
  • Apply the binomial equation formula to calculate sample size
  • Employ methods for adjusting sample size
  • Practice combining results, given a scenario
  • Describe elements within the report
  • Track key information at a high level throughout the planning phase
Calling all...
  • Audit Executives, Audit Managers and Auditors in both the public and private sectors
Course Description

Prerequisites: None

Advanced Preparation:
Bring an audit that you are currently working on that is in the planning stages, and bring a calculator.

Delivery Method: Group-Live and Group-Internet-Based

This 2-day seminar provides the opportunity to learn about the strategies and pitfalls regarding data collection facing auditors, as well as answers to some commonly asked questions.

The seminar includes different methods of random sampling (simple, stratified, dollar unit, stop/go) and non-random sampling (quota, judgmental); explains how to calculate sample size and adjust for population size and resource constraints; examines the concept of strategic sampling to get the most information for minimum cost, including how to combine results, extrapolate and what to report. The seminar provides time for participants to raise issues and concerns they are currently facing in today's environment and to apply what they have learned to audits currently underway, particularly typical challenges faced by auditors in sample selection, data interpretation, generalization, and representativeness.

This is a hands-on, dynamic seminar. It includes lectures, discussions, exercises, and practice.

Course Outline
Introduction to Statistics
  • Summarize introductory terminology and methodology related to statistical sampling
  • Differentiate between descriptive and inferential statistics
  • Distinguish between a population and a sample
  • Contrast a sample with a population census
  • Explain how sample method relates to sample size
Random Sampling
  • Employ random sampling techniques
  • Identify types of random sampling
  • Discuss the randomness assumption
  • Conduct a simple random sample
  • Contrast various stratified random sample designs
  • Choose appropriate start points and skip intervals for dollar unit sampling
Non-Random Sampling
  • Identify non-random sampling techniques
  • Describe the use of quota sampling
  • Describe the use of judgmental sampling
Calculating Sample Size
  • Apply the binomial equation formula to calculate sample size
  • Explain the importance of expected error rate in working papers
  • Calculate sample size using the binomial equation
  • List six sources for expected error rate
  • Discuss risks of large samples in pilot studies
Adjustments
  • Employ methods for adjusting sample size
  • Calculate adjustments for sample size
  • Describe how population size affects adjustment impact
  • Explain adjustments for resource constraints
  • Recalculate precision intervals
  • Describe steps for finalizing sample size for audit
  • Describe bias and ethical considerations for testing hypotheses
Combining Results
  • Practice combining results, given a scenario
  • Calculate combined error rate
  • Calculate combined dollars at risk
  • Combine judgmental data with combined error rate and dollars at risk
Reporting
  • Describe elements within the report
  • Explain the purpose of a mock report
  • Describe what can and cannot be included in the report
  • Describe the use of the statistical probability statement in the report
  • Contrast statistical significance and audit opinion
Strategic Sampling
  • Track key information at a high level throughout the planning phase
  • Balance the statistical design and the non statistical activities to minimize cost
  • Allocate resources to the total audit plan
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