The Impact of False Rejection on Audit Planning

For the uninitiated, false rejection—also known as a type l error—is a kind of sampling risk that puts forward the idea of a sample that does not entirely represent a population and may only turn out to be a subset. Thus, if such an error existed, then there is a big chance that conclusions drawn by the end of the survey will be erroneous.

The idea of false rejection is highly linked with the idea of efficiency. In such a case, there is a huge likelihood that the auditor in question will arrive at the right conclusions. However, the process of achieving those conclusions may not happen in the most efficient way possible. This is often the case when auditors take more than one sample from the population, and usually at the behest of a client. The client, in this case, is the one who holds the belief that the internal control works. Thus, the audit sampling may be vulnerable to false rejection or type 1 error.

Some auditors believe that false rejection skews the data of an audit sampling. However, if done right, the false rejection risk does not really contribute to posterior risk in any major way.

Higher Education for Audit Professionals

If you’re an audit professional and you have a great deal of interest in risk based audit topics, one of the best ways to update yourself with everything about the subject is to pursue higher education. Find a course or program that specifically deals with audit topics such like risk based audit errors and enrol in it.

With so much competition in the job market, it is a wise idea to stand out from the rest of your competition. One way to do that is to earn that higher education degree, especially if it is in a field as in-demand as technology, science and finance are.

Many organizations recognize the need for qualified audit professionals. Too many applicants these days still lack the proper training and expertise necessary for them to handle the demands of the job. In turn, the job market has suffered from a shortage of talents in plenty of fields, especially involving jobs that require trained and knowledgeable audit professionals.

Thus, you, with your higher education diploma in hand, will be certain to go straight to the top of the hiring pile. Add industry experience to the mix and you will be set.

Still, however important experience and on-the-job training are, in the absence of such qualifications, a higher education may suffice. It may, in fact, be the only thing to stand in the way of you being hired and chosen for the job—or you losing that job to someone else. So if you want to start your career the right way, look into the possibility of enrolling in an audit course or program and start improving your skill set sooner rather than later.