The Accounting Review Vol. 31 No. 2 1956
RELIABILITY OF SAMPLING PLANS IN AUDITING.
Abstract
The article describes the procedures followed for studying the reliability of sampling plans in 100 percent auditing and a summary of its results. The author explains the methods followed in the study which required the selection of an actual case consisting of a large group of accounting data. The summary of classification of errors and an application of the indicated ratio for other miscellaneous errors has been presented in Exhibit I. Errors were classified as minor and major errors which involve errors in footing and computations, among others and the misclassification of cost respectively. He enumerates the objectives of auditing and a description of the selected samples. He highlights the concept of using opportunities of error in sample selection rather than the absolute number of items actually examined and the direct consequences of using the concept. He enumerates the criterion for acceptance in auditing situations and illustrates the determination of acceptable error by calculating the cost of a complete audit and setting the maximum amount of error acceptable before resorting to a 100 percent audit. He then enumerates the general observations that can be made while determining the relative reliability of the samples studied.
- DOI
- 10.2308/tar-7058969
- Volume
- 31
- Issue
- 2
- Pages
- 253-257
- Language
- en
- Sources
- openalex crossref