IDEAS home Printed from https://ideas.repec.org/a/vrs/stintr/v20y2019i2p85-106n7.html
   My bibliography  Save this article

Application Of The Strategy Combining Monetary Unit Sampling And The Horvitz– Thompson Estimator Of Error Amount In Auditing – Results Of A Simulation Study

Author

Listed:
  • Janusz Bartłomiej

    (TAURON Polska Energia S.A., Operational Audit Unit, Katowice, Poland .)

Abstract

Auditors need information on the performance of different statistical methods when applied to audit populations. The aim of the study was to examine the reliability and efficiency of a strategy combining systematic Monetary Unit Sampling and confidence intervals for the total error based on the Horvitz-Thompson estimator with normality assumption. This strategy is a possible alternative for testing audit populations with high error rates. Using real and simulated data sets, for the majority of populations, the interval coverage rate was lower than the assumed confidence level. In most cases confidence intervals were too wide to be of practical use to auditors. Confidence intervals tended to become wider as the observed error rate increased. Tests disclosed the distribution of the Horvitz-Thompson estimator was not normal. A detailed analysis of the distributions of the error amount in the examined real audit populations is also given.

Suggested Citation

  • Janusz Bartłomiej, 2019. "Application Of The Strategy Combining Monetary Unit Sampling And The Horvitz– Thompson Estimator Of Error Amount In Auditing – Results Of A Simulation Study," Statistics in Transition New Series, Statistics Poland, vol. 20(2), pages 85-106, June.
    • Handle: RePEc:vrs:stintr:v:20:y:2019:i:2:p:85-106:n:7
    DOI: 10.21307/stattrans-2019-016
    as

    Download full text from publisher

    File URL: https://doi.org/10.21307/stattrans-2019-016
    Download Restriction: no
    File URL: https://libkey.io/10.21307/stattrans-2019-016?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Alfio Marazzi & Yves Tillé, 2017. "Using past experience to optimize audit sampling design," Review of Quantitative Finance and Accounting, Springer, vol. 49(2), pages 435-462, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Roberto Benedetti & Maria Michela Dickson & Giuseppe Espa & Francesco Pantalone & Federica Piersimoni, 2022. "A simulated annealing-based algorithm for selecting balanced samples," Computational Statistics, Springer, vol. 37(1), pages 491-505, March.
    2. Bartłomiej Janusz, 2019. "Application Of The Strategy Combining Monetary Unit Sampling And The Horvitz– Thompson Estimator Of Error Amount In Auditing – Results Of A Simulation Study," Statistics in Transition New Series, Polish Statistical Association, vol. 20(2), pages 85-106, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:stintr:v:20:y:2019:i:2:p:85-106:n:7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://stat.gov.pl/en/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.