Discussion of Considerations in Choosing Statistical Sampling Procedures in Auditing

Anderson, R. J.; Leslie, Donald A.

doi:10.2307/2490477

Cited by 2 publications

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“…Situations may exist (see, for example, Anderson and Leslie (1975)) where the auditor is relatively unsure about the nature and extent of errors in the client's population. For example, in the extreme case (presented in Table 3) in which the auditor is "ignorant," i.e., the auditor's prior suggests that each intemal control element has a 50-50 chance of being correct, the results are relatively insensitive to both TTi and 112, as expected.…”

Section: (S)t(t) T(s + T + N)mentioning

confidence: 99%

“…171-172) suggested that NSE may be more critical to audit evidence reliability than sampling error. Loebbecke and Neter (1975) and Anderson and Leslie (1975) stated that the auditor should consider the magnitude of nonsampling risks (NSE) in the development of sampling designs. Sorkin (1982) stated that the sample sizes in non-Bayesian discovery sampling tend to be understated due to NSE.…”

Section: Introductionmentioning

confidence: 99%

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An investigation of the possible effects of nonsampling error on inference in auditing: A Bayesian analysis*

Trader

Huss

1987

Contemporary Accting Res

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Abstract. A Bayesian model for nonsampling errors made by the auditor is investigated to determine the effects of such errors on audit inferences. Predictive distributions are used to illustrate that for "realistic" audit situations. Type II errors will have little effect on inferences for a given level of Type I error. Type I errors are shown to play a more critical role in determining the acceptability of an intemal control.Risumi. Un modfele Bayesien relatif aux erreurs, de nature autre qu'echantillonnale, commises par le verificateur est 6tudi6 afin de determiner les effets de telles erreurs sur les inferences en verification. Des distributions de prediction sont employees pour illustrer le fait qu'en situation de verification «realiste», les erreurs de deuxieme espece auront peu d'effet sur les inferences pour un niveau donne d'erreur de premiere espfece. II est montre que les erreurs de premifere espSce jouent un role plus critique en ce qui a trait h la determination du caractere acceptable d'un proc^de de controle inteme.

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Section: (S)t(t) T(s + T + N)mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%