L12 Notes_Part_2 - (MPU), ratio, difference estimation)...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Is the account balance fairly presented? Variable Sampling: The Question
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Two Statistical Variable Sampling Approaches A.Probability proportional to size PPS (e.g., dollar unit sampling, monetary unit sampling, cumulative monetary amount sampling). This approach is based on attribute sampling theory. It was developed for auditors in the last 30 years and is the most frequently employed statistical sampling approach today. Hypergeometric distribution. B. Classical variables sampling (e.g., mean per unit
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: (MPU), ratio, difference estimation) based on normal distribution theory. Older method but still useful if the assumptions underlying MUS are violated. In the Days of Yore: Before PPS How do you pull a Stratified Sample? Before PPS sampling, the auditor gave greater scrutiny to larger items with Stratified Sampling. The other advantage of stratification is that each stratum has a more homogeneous variance enhancing the statistical power of the model (Show graphs)....
View Full Document

This note was uploaded on 10/05/2011 for the course ACG 5637 taught by Professor Monikacaushoulli during the Fall '08 term at University of Florida.

Page1 / 3

L12 Notes_Part_2 - (MPU), ratio, difference estimation)...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online