Additional information will be required to complete Parts A and B and those files are available on BB. Hooplah, Inc. 9.6 Applying Audit Sampling Concepts to Tests of Controls and Substantive Testing in the Revenue Cycle Mark S. Beasley · Frank A. Buckless · Steven M. Glover · Douglas F. Prawitt l ea r n ing ob je C t ive s After completing and discussing this case you should be able to [1] Understand the differences between statistical and non-statistical sampling [2] Appreciate the professional judgment involved in determining the extent of sampling to be performed [3] Appreciate the role of sampling risk in determining sample size and in evaluating results Understand how to perform attribute sampling for tests of controls [5] Know how and why it is important to consider size- and risk-based substantive testing prior to obtaining evidence using audit sampling [6] Understand the implications of the results of tests of controls on substantive testing [4] INTRODUCTION Your audit firm, Garrett and Schulzke LLP, is engaged to perform the annual audit of Hooplah, Inc., for the year ending December 31, 2012. Auditing standards also allow The case was prepared by Mark S. Beasley, Ph.D. and Frank A. Buckless, Ph.D. of North Carolina State University and Steven M. Glover, Ph.D. and Douglas F. Prawitt, Ph.D. of Brigham Young University, as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of an administrative situation. Hooplah, Inc. is a fictitious company. All characters and names represented are fictitious; any similarity to existing companies or persons is purely coincidental. Copyright © 2012 by Pearson Education, Inc., Upper Saddle River, NJ 07458 281 Section 9: Auditing Cash and Revenues auditors to use non-statistical sampling approaches. Non-statistical audit sampling approaches are based on a foundation of