A Constrained Cost-Minimization Model for Audit Sample Planning.

Key Points

• The aim is to develop a decision-aid model to optimize audit sampling by minimizing costs while considering various factors.
• Integrates facts, estimates, and judgments related to auditing a specific account
• Implements planning for substantive sample and test of control before final risk assessment
• Compares solutions for a standard audit problem
• Demonstrates a reduction in sampling costs while maintaining the effectiveness of audit results.
• Indicates improved planning processes for assessing control risk, which could enhance overall audit efficiency.