Procedure adapted for completing the Form E- 34 and E-35: ‘A sample of 60 transactions are taken from the accounting period, 20 each from the beginning of the year, 20 from the middle of the year and 20 transactions from the end of the year are picked up. Non statistical parametric tests were used to find out if there are any ambiguities in the data The forms are filed up as follows Form E-1-1 S.No | Audit procedure Initial| Date | ReferenceAsample of 59 receiving reports are scanned ane cross examined with the following Rs | 15/4 E34 a | Purchase orders & invoices Rs | 15a Exceptions observed are produced categorically in the form E-35.Form £-35 Non statistical Tests for Evaluation For the year ended, December, 2014. Misstatement Recorded amount | Audited amount | Corrected Amount Total Misstatement Explanation: The Form E-35 is slated to offer information regarding the financial misstatements carrying falsined or wrongly represented data. The form’s objective Is to nd out the differences between the recorded amounts and audited amounts. If any differences are found they will be rectified and represented in the corrected amount portion In this case there are no deviations between the represented amounts and the audited amounts and hence the form did not have any entries of corrected statementsPerformance Materiality Projected population Dollar Misstatement Recorded Adjustments Nil Allowance for sampling risk Explanation: The form contains different asgects such as the performance materiality of risk involved with the sample. For example if among the sample of 60, 5 statements are found to be containing misstatements then it can be a major risk or can be neglected. The extent and impact of the risk is based on the situation itis used. Thus percentage of the error in the sample decides the material impact on the subject. Also the table provides 2 section from which the estimated percentage of misstatements can be calculated. The advantage of doing this is to estimate the percentage of risk associated with the sample. The table also allows for recording of the corrected statements. Also the table allows us to ‘decide the extent to which a sampling risk can be accepted. In this case a sample of 60 recorded transactions is picked up and is subjected to a series of non parametric tests. Itis