INDIAN AUDIT AND ACCOUNTS DEPARTMENT

REGIONAL TRAINING INSTITUTE, CGO COMPLEX,
3RD MSO BUILDING (5TH FLOOR-‘A’ WING),

DF BLOCK, SALT LAKE, KOLKATA-700 064

Website:-http://rtikolkata.cag.gov.in/

Course Title: Risk based Audit Approach & Statistical Sampling in Audit.

Course Duration: 05 Days

Date / Session-I
10.30 hrs. to 11.45 hrs –. / Session-II
12.00 hrs. to 13.15 hrs / Session-III
14.15 hrs. to 15.30 hrs. – / Session-IV
15.45 hrs. to 17.00 hrs.
12.01.15
Monday / Inauguration/ PD RTI
Descriptive Statistics:
1. What is data? (Qualitative vs. Quantitative data):
2. What is an Attribute?
3. Frequency distribution of data.
4. Concept of random variable. / 1.Measure of Central Tendency (Mean, Median
and Mode): Concept, measure applicability
2. Measure of Dispersion (Range, Standard Deviation Coefficient of variation): Concept, measure applicability. / 1. Classical definition of probability: Concepts with examples.
2.Probability distribution (Binomial, Poisson Normal Distribution) Concepts applicability. / Practical:
Using Excel /IDEA package demonstrate different statistics using live data and interpret the statistics to draw conclusions about the
distribution,ofthe data
13.01.15
Tuesday / Statistical Sampling:
1. What is Statistical Sampling?
2. How it is different from judgmental and convenient sampling?
3.Advantages of statistical sampling.
4. What is a Random Number Table? Its relevance in statistical sampling and concept of sampling frame.
Contd.
Contd. / 1. Different techniques of statistical sampling. Simple Random Sampling (SRS), Systematic Random Sampling: concepts, definition and applicability.
2.Methodology of drawing samples using SRS Systematic (both Linear Systematic and
Circular Systematic) using
a) Random Number Table .
3. Estimation formulae for estimation of population average, total and proportion of an attribute and corresponding estimation of standard errors:
(Only the formulae to be stated, without proof)
4. Demonstration with various examples is very important / Statistical Sampling (Contd.):
1 .Probability Proportional to Size (PPS) sampling: concept, definition applicability.
2. Different techniques of drawing samples for PPS design (Cumulative Total method, Prof. Lahiri's method of drawing samples).
3. PPS Systematic sampling its method of drawing samples.
4. Demonstration may be given with examples
5. Estimation formulae for estimation of population average, total and corresponding estimation of standard errors concept of multiplier in sampling.
(Only the formulaeto be stated without proof) / Practical:
I) Problems on selection of samples and evaluation offew characters ofinterest using
SRSWR, SRSWOR, Systematic, PPS, and PPS- systematic design.
Contd.
Contd.
14.01.15
Wednesday / Statistical Sampling (Contd):
I.Stratification in sampling
2.Cluster Sampling.
3. Stratification vs. Cluster Sampling' 4.Advantages of stratification.
5.Estimation formulae under stratification.
6. Demonstrate with examples. / 1. Multistage Statistical Sampling, with particular reference to two-stage sampling: Concepts applicability.
2. Estimation formulae using two-stage design-
(a) 1st stage as PPSWR and the 2nd Stage as SRSWOR.
(b) SRSWOR in both the stages. / Practical:
I) Selection of samples under a two-stage stratified design from a given set of data and estimation of two characteristics of the population from the selected sample.
15.01.15
Thursday / Audit Sampling:
I. What is Statistical Audit Sampling.?
2. Its advantages in audit.
3. The risk of statistical sampling.
4. Attribute Vs. Variable Sampling
Contd.
Contd. / 1. Attribute sampling plan, determination of optimum sample size along with concepts of confidence level, precision population deviation rate.
2. Variable Sampling plan determination of optimum
sample size along with concepts of Confidence level, precision population standard deviation.
3. Un stratified Mean Per Unit.
4.Stratified Mean Per Unit. / 1. Concept of alpha beta risk their relevance in audit hypothesis testing.
2. Concept of tolerable misstatement materiality in audit hypothesis testing.
3. Compliance test vs. Substantive test in audit
4. Monetary Unit Sampling (MUS) '& demonstration of planning and selection of samples using IDEA. / Practical example of selection of samples using
IDEA-MUS.
Contd.
Contd.
16.01.15
Friday / Risk assessment sampling in audit
I.Risk based analysis the risk model in audit.
2.Risk perception as input to statistical sampling. / Case studies
Discussion on risk assessment and statistical
sampling with Case Studies / Case studies
Discussion on risk assessment and statistical
sampling with Case Studies / Valediction

Tea Break-11:45 to 12:00 hrs & 15:30 hrs to 15:45 hrs. Lunch Break: 13:15 hrs to 14:15.hrs

NB: Programme is subject to change under circumstances.