RSM423H1 Lecture Notes - Lecture 1: Confidence Interval, Norm (Social), Null Hypothesis
12 Feb 2017
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Statistical auditing: the foundation of the audit risk concept and audit reasoning. Required readings (click on the link if given, or look for file in bb): Cas, 500, 530, and aug-41 (an old cica handbook guideline available on bb that best illustrates how audit standards, until recently, have ignored important uncertainties) Review problem dc 10-4 page 425 sb (same as first class handout). Giant store"s case the power of statistical reasoning to guide audit judgment posted in bb. Public report on big 4 inspections, nov. 2015. Audit risk: risk of failing to detect material misstatement. Sampling risk: the probability that an auditor"s conclusion based on a sample might be different from the conclusion based on an audit of the entire population. Beta risk is more riskly and it runs the situation of the auditor"s failing to detect a material misstatement.
