Account Screening: Rationalizing The Extendedprocedures Decision in The Audit Context

The basis of the audit is the evaluation of audit evidence created from random samples of sufficient size from sensitive accounts. A critical question therein begged is: Which of the myriad numbers of accounts are likely candidates for extended procedures testing through such random sampling? We address this question by offering four account screening protocols that may be used by the auditor in forming the extended procedures platform for the audit. Specifically, we detail and illustrate account screening protocols that address: (i) General as well as (ii) Directional Errors in the accounts. (iii) Account Screening based upon the Even Or Odd profile of the account data, and (iv) the existence of GAPs in AIS-activity sets. All of these protocols and related test datasets are part of a Decision Support System [DSS] programmed in VBA open-access [Excel, v.2013] that is available without cost as a download without restriction on its use. This DSS is currently used in our undergraduate Audit & Assurance course and has formed the basis of our academic consultancy with various Audit LLPs.