Auditing and Assurance Services 9th Edition by Alvin Arens,Mark Beasley,Randy Elder

Exercise 26

Jenny Jacobs, CPA, is planning to use attribute sampling in order to determine the degree of reliance to be placed on an entity's system of internal control over sales. Jacobs has begun to develop an outline of the main steps in the sampling plan as follows:
1. State the test objectives (for example, to test the reliability of internal controls over sales).
2. Define the population (the period covered by the test, the sampling unit, the completeness of the population).
3. Define the sampling unit (for example, sales invoices).
Required:
a. What are the remaining steps in the outline that Jacobs should include in the statistical test of sales invoices?
b. What are the advantages of using statistical audit sampling?
(AICPA, adapted)