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Control of sampling risks in auditing

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  • WALLY SMIELIAUSKAS

Abstract

. This paper systematically analyzes the factors that affect sampling risks of the two major classes of statistical estimators in auditing. It develops three approaches for identifying when a particular estimator is preferred ex ante. It also provides a simulation analysis of ex ante†ex post sampling risk differences. The paper concludes that dollar†unit sampling may be more widely used than previous research has indicated. Résumé. Cet article analyse de façon systématique les facteurs d'influence du risque échantillonnal attaché aux deux grandes catégories d'estimateurs statistiques en vérification. Trois approches sont développées afin d'identifier les circonstances où un estimateur particulier s'avère préférable ex ante. Une analyse de simulation portant sur les différences de risque échantillonnai ex ante et ex post est également présentée. Cet article conclut que la méthode d'échantillonnage en unités monétaires semble plus utilisée que ce que la recherche antérieure laisse entendre.

Suggested Citation

  • Wally Smieliauskas, 1986. "Control of sampling risks in auditing," Contemporary Accounting Research, John Wiley & Sons, vol. 3(1), pages 102-124, September.
    • Handle: RePEc:wly:coacre:v:3:y:1986:i:1:p:102-124
    DOI: 10.1111/j.1911-3846.1986.tb00629.x
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    References listed on IDEAS

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    1. Teitlebaum, Ad & Robinson, Cf, 1975. "Real Risks In Audit Sampling," Journal of Accounting Research, Wiley Blackwell, vol. 13, pages 70-91.
    2. Garstka, Sj & Ohlson, Pa, 1979. "Ratio Estimation In Accounting Populations With Probabilities Of Sample Selection Proportional To Size Of Book Values," Journal of Accounting Research, Wiley Blackwell, vol. 17(1), pages 23-59.
    3. Duke, Gl & Neter, J & Leitch, Ra, 1982. "Power Characteristics Of Test Statistics In The Auditing Environment - An Empirical-Study," Journal of Accounting Research, Wiley Blackwell, vol. 20(1), pages 42-67.
    4. Smieliauskas, W, 1986. "A Simulation Analysis Of The Power Characteristics Of Some Popular Estimators Under Different Risk And Materiality Levels," Journal of Accounting Research, Wiley Blackwell, vol. 24(1), pages 217-230.
    5. Kaplan, Rs, 1975. "Sample-Size Computations For Dollar-Unit Sampling," Journal of Accounting Research, Wiley Blackwell, vol. 13, pages 126-133.
    6. Godfrey, J & Neter, J, 1984. "Bayesian Bounds For Monetary Unit Sampling In Accounting And Auditing," Journal of Accounting Research, Wiley Blackwell, vol. 22(2), pages 497-525.
    7. Menzefricke, U, 1983. "On Sampling Plan Selection With Dollar-Unit Sampling," Journal of Accounting Research, Wiley Blackwell, vol. 21(1), pages 96-105.
    8. Menzefricke, U, 1984. "Using Decision-Theory For Planning Audit Sample-Size With Dollar Unit Sampling," Journal of Accounting Research, Wiley Blackwell, vol. 22(2), pages 570-587.
    9. Frost, Pa & Tamura, H, 1982. "Jackknifed Ratio Estimation In Statistical Auditing," Journal of Accounting Research, Wiley Blackwell, vol. 20(1), pages 103-120.
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    1. Lowell Dworin & Richard A. Grimlund, 1989. "A comprehensive hypothesis testing approach to dollar unit sampling," Contemporary Accounting Research, John Wiley & Sons, vol. 5(2), pages 674-691, March.
    2. Ulrich Menzefricke & Wally Smieliauskas, 1987. "A comparison of the stratified difference estimator with some monetary†unit sampling estimators," Contemporary Accounting Research, John Wiley & Sons, vol. 4(1), pages 240-251, September.
    3. Ulrich Menzefricke & Wally Smieliauskas, 1988. "On sample size allocation in auditing," Contemporary Accounting Research, John Wiley & Sons, vol. 4(2), pages 314-336, March.
    4. Nader Gemayel & Elizabeth Stasny & James Tackett & Douglas Wolfe, 2012. "Ranked set sampling: an auditing application," Review of Quantitative Finance and Accounting, Springer, vol. 39(4), pages 413-422, November.
    5. 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.

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