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STATISTICAL SAMPLING

Page 1

SAMPLING TEST PLAN - SAMPLE SIZE

IF YOUR SAMPLE TEST PLAN IS:


Population Size:
Sampling Error:
Confidence Level:
Expected (true) Error Rate:
THEN THE SAMPLE SIZE SHOULD BE:

10,000
2.0%
90%
5.0%

313

SAMPLING TEST PLAN - SAMPLING ERROR

IF YOUR SAMPLE TEST PLAN IS:


Population Size:
Sample Size:
Confidence Level:
Expected (true) Error Rate:
THEN THE SAMPLING ERROR WILL BE:

10,000
313
90%
5.0%

2.0%

SAMPLE SIZE CALCULATION - DOLLAR UNITS

IF YOUR SAMPLE TEST PLAN IS:


Population Book Value:
Maximum Allowable Error:
Confidence Level:
Expected or Actual Number of Errors:
THEN THE SAMPLE SIZE SHOULD BE:

250,000.00
5.0%
95%
0

60

Required
Maximum Tolerable Error Auditor Will Accept in Pop.
90%, 95% or 99%
Max = 20
Random Samples Only

SAMPLE SIZE CALCULATION - DOLLAR UNITS

Maximum Tolerable Error Auditor Will Accept in Pop.

UPPER CONFIDENCE BOUND FOR MEAN ERROR - DOLLAR UNITS

IF YOUR SAMPLE TEST PLAN IS:


Population Book Value:
Sample Size:
Confidence Level:
Number of Dollar Unit Errors:
A/R or INV?:
UPPER BOUND OF ERROR WILL BE:

250,000.00
60
95%

0
A/R

4.92%

ERROR
TAINTING
VALUES

Required
Dollar Units - Random Samples Only
'90%, 95% or 99%
Max = 100
Enter "A/R" or "INV"
Maximum Tolerable Error Acceptable to Auditor

UPPER CONFIDENCE BOUND FOR MEAN ERROR - DOLLAR UNITS

UPPER CONFIDENCE BOUND FOR MEAN ERROR - DOLLAR UNITS

CONCEPTS

DEFINITIONS
Appraisal of sample results is necessary to determine the sampling precision achieved. This is
because in order to calculate the sample size it was necessary for the auditor to estimate the rate of
occurrence (expected error rate) in the field.
Acceptance Sampling - A method of sampling in which if for a given sample size, if not more than a
certain number of errors is found, then the population is considered acceptable, otherwise the population
is rejected.
Attributes Sampling - Estimation sampling that establishes the frequency of occurrence of some kind of
event or type of item.
Cluster Sample - Groups of items (not individual items) are drawn from the population at random points.
Confidence Level - The probability (expressed in %) that the value obtained from the sample will in fact
depart from the true population value by no more than the amount of the sample precision.
Discovery Sampling - Used to determine the sample size which will give any desired degree of
assurance that at least one occurrence of a particular event will occur in the sample when it happens with
at least a certain frequency in the population.
Estimation Sampling - Used to answer the question of how many or how much.
Expected Error Rate - In Attribute Sampling, used in calculating sample size. Auditor's estimate of the
true rate of occurrence of the event (error) in the population being tested. This is the expected error rate
anticipated by the auditor.
Judgment Sample - Any sample not meeting the criteria of a probability sample.
Maximum Tolerable Error Rate - The maximum true rate of error in the universe with which the auditor
can be comfortable. It is the sum of the expected universe error rate and the upper limit of the sampling
precision.
Multistage Sample - A sample taken on several levels, i.e., a random sample of branch offices and then
a random sample of records at each branch selected.
Population - The totality of observations from which the sample was drawn. Otherwise known as
universe or field.
Sample - The observations drawn from the entire group.
Sample Precision - Error in a statistical sample. Usually expressed as a +/- percentage in relation to the
sample result. Denotes the degree to which the sample result (statistic) reflects the true population
parameter (e.g., error rate).
Standard Deviation - A measure of the dispersion of values about the arithmetic mean, specifically the
average of the distance of all values from the arithmetic mean.
Statistic - The value of the characteristic (average, percentage, proportion of some type, etc.) derived
from the sample.
Statistical Sampling - A sampling method that establishes the required sample size objectvely as well as
appraises the sample results objectively. The sample taken is referred to as a probability or random
sample.
Stratefied Random Sample - Items are segregated into separate segments (or strata) of the population
and any item within a segment has an equal probability of being selected.
Systematic Sampling - A method of obtaining a probability sample consisting of drawing every nth item
beginning with a random start. Otherwise known as interval sampling.
Unrestricted Random Sample - All items in the population have an equal probability of being selected,
without segregating any portion of the field.
Variables Sampling - Estimation sampling that provides an estimate of an average or total value.

Page 9

STANDARD DEVIATION CALCULATION

Standard Deviation is:

#DIV/0!

RANDOM NUMBER LIST


598890
595598
524916
561115
557567
598048
574892
598780
586176
559982
564085
537975
509224
521521
530800
522037
593738
566455
539814
555902
518861
517635
585791
584892
533578
501595
525347
556054
593774
543462
556904
536625
555653
531304
552635
578317
521421
586200
562429
511250
594900
589538
562359
591541
524418
523371
506048
510496
595186
543889
546884
546519
554066
502634
576971
592298
554515
553765
592386
511422
501184
588443
510353
566195
521438

591777
542252
557842
564364
537676
577610
588157
506726
569481
539964
520529
565485
546435
543080
525975
542410
582390
550303
545168
541108
578125
598689
550006
524418
561286
535382
515192
502781
596239
551526
555810
530390
554723
570987
557207
525914
504687
594877
573418
560322
530922
517579
542097
504441
564985
525480
557172
582598
522394
547896
540298
525075
513754
573409
571380
595989
514173
547877
527146
556491
542875
553639
545245
520275
553849

573111
511235
502529
535019
593098
558067
542063
565818
516740
551426
517825
534106
593173
576741
577497
501964
580339
573610
506781
535487
559376
515078
522739
568303
576423
568226
588639
588974
534345
561971
509621
511446
539686
594629
568992
562089
587941
576761
512756
551507
541124
545126
557817
586631
505482
579042
529363
505863
552161
517368
519502
547311
579938
548744
548746
558798
592690
504526
588479
522705
541748
542296
591298
524061
536747

553464
559788
539069
534227
568802
500578
509912
591880
544244
502046
529904
554715
560650
539347
564906
515211
570481
543954
541779
536243
592472
524417
521280
544269
548656
524334
593651
532478
562001
532102
545880
570970
517626
540925
564081
518004
516051
555193
524520
599191
571663
502296
513867
532667
569544
581189
592679
515978
574229
573253
552748
598681
571434
522136
524283
572237
503261
502512
551185
504114
505711
576924
533059
507944
563734

541131
501454
533912
517830
597465
516680
522386
575529
570060
549877
512411
509730
548481
572985
580690
503062
521739
515211
560380
511590
522081
540469
586250
516892
585703
556662
559462
551438
520575
545178
588289
592392
586826
516869
528178
543540
545612
558959
591423
576374
586115
542099
541290
576104
567281
539348
589839
552143
503584
540577
556276
599304
587007
526159
570063
567424
536310
572161
599384
559753
545388
504826
549359
525986
530774

591320
541618
511644
576151
594553
591980
559893
563284
533420
573812
593355
504167
543051
589152
587228
550446
553325
554302
509843
557226
574587
575458
534329
590384
516893
554477
505533
574679
591007
521435
561059
532021
584865
582919
561385
548917
504811
504941
556297
597120
500085
536551
534192
572748
547581
520334
505468
573145
591509
507208
571645
550896
520517
505022
548052
545806
518850
574589
555905
559015
513910
541681
551052
569450
541574

571434
510681
514970
525548
510422
512223
586064
586434
536225
561939
593189
588135
534463
532703
569074
558263
559635
531184
592225
589568
546776
534260
578506
518858
524116
558664
584036
549371
516480
537636
520560
561979
539061
501986
596102
502871
598970
516580
573437
504004
576605
558593
510989
532752
506097
515382
565429
563560
594564
578722
525894
590192
578643
593782
575180
592754
508284
550565
596992
522964
580301
532830
592074
521854
505416

565924
558139
535061
589264
508147
531650
547934
585951
582284
535942
598845
545956
510422
566176
568827
537526
554442
584286
518644
571225
553265
532696
575820
563669
519964
535170
578320
575554
579239
529216
537662
508874
524464
537429
590158
582602
547598
555063
594295
575345
502697
515538
545295
552710
525876
550337
522593
558241
518967
506008
519838
593870
565730
552053
560256
546069
530093
547342
592140
568037
595953
501820
572324
506288
563605

525297
589801
565473
542076
552693
527042
549158
571432
565071
521748
579308
586452
578994
587999
533185
560869
519502
523131
547369
511670
558874
594102
505556
543650
549589
530298
569202
594643
526179
599755
536615
511261
514082
520582
570260
573381
542241
595100
538900
544720
555149
530847
509539
575446
563120
565629
558179
599021
541848
529802
529888
569863
526525
524860
541923
511538
570904
534847
501975
589109
561252
533823
519091
565404
543395

568302
589900
543241
550845
500224
577697
528142
539129
563267
511099
564623
553208
556212
512012
555527
537258
547635
564369
553095
509072
569908
581629
590176
577732
518219
564221
527688
598961
546779
506839
515205
588158
538818
538601
507365
516954
519554
586840
546820
546246
571706
597494
555709
587901
536944
524922
540876
526681
560194
536902
524917
532041
508446
523671
545044
519280
533145
592488
508532
593869
515149
534806
581185
583106
539239

RANDOM NUMBER LIST


598412
560070
585271
542240
555971
543210
599465
585354
592927
581369
595308
583695
538435
553733
500106
527047
504177
571387
537412
582588
593908
587127
514457
550223
571793
595509
500590
549025
553417
549837
580964
537981
539095
525021
586353
513088

553748
572365
533848
565634
586504
506858
531311
559955
558767
593151
549871
532979
532338
553862
562857
568936
549515
528161
515790
520541
542544
566164
529776
594881
558917
507836
596590
593030
506597
504891
565586
519447
509601
523257
525901
509741

584485
580133
572838
560740
539109
588485
552520
520696
572330
587866
505698
581664
544075
586598
534225
521562
580976
593732
553671
592064
570628
504796
526619
521238
596330
545267
555922
521935
568043
580256
558479
542238
597621
599201
597081
568924

589712
584132
522020
526726
536106
516050
560207
524465
581414
533891
516005
556027
526303
559432
581771
571123
590776
505613
558974
563566
587642
540800
506523
520852
576590
522130
521829
545356
598684
505761
502900
506025
519352
583501
528593
510710

586807
580309
597582
555347
570637
528879
558037
596061
574817
553359
574337
514394
566229
569867
518885
595239
508948
509933
586914
511318
548158
525139
593342
582524
599717
514359
517444
569622
528727
526721
510944
518132
515362
526157
531927
529093

533845
506121
503614
547549
519420
586069
507868
591333
501210
545905
501761
556483
597435
560936
548620
587791
550845
512619
548912
501014
580561
591711
537938
569396
521471
538611
538448
521653
582403
597700
528102
570965
524343
510146
515215
584287

540766
553583
563595
560572
542227
519665
507757
543885
567484
541759
507340
557237
572209
561193
538255
568559
551714
554233
546767
514412
500262
589712
507537
501415
568302
560068
591226
566828
537296
544210
524554
588429
517054
511604
599559
535054

578883
502165
503000
596113
524221
592474
518611
538289
594483
561116
518223
581879
507990
577208
576123
567450
570141
548188
555474
563033
502392
571906
507756
582787
589431
521896
518859
537926
588795
517948
577772
555429
559573
550712
520357
546147

506170
512410
567220
526434
521585
589069
503983
515556
593684
564516
540051
550967
558553
579160
530500
595781
528054
588742
516363
571155
528751
547186
500972
571789
593378
546367
521237
511086
504300
516560
566029
559762
542291
587919
570645
543861

559857
518989
506991
566743
554637
586885
534191
565471
556555
545742
522897
550923
536726
501245
589222
527113
530875
584734
542549
542466
589005
506077
578693
530166
515490
561040
563016
560207
583664
565447
535641
592729
533614
577634
559322
577346

Sample Size Calculation - Variables Sample


IF YOUR SAMPLE TEST PLAN IS:
Population Size (No. of values):
Sampling Error (In dollars, days, etc.):
Confidence Level:
Estimated Standard Deviation
THEN THE SAMPLE SIZE SHOULD BE:

0.00
10.00
95%
50.00

95

If unknown, enter 0.
Range of error (+/-) of the sample result - keep it small.
90%, 95% or 99%
Worst case population error rate expected.
Random Samples Only

SAMPLING ERROR CALCULATION - VARIABLES SAMPLE

IF YOUR SAMPLE TEST PLAN IS:


Population Size: 5,000.00
Sample Size:
94
Confidence Level:
95%
Estimated Standard Deviation:
50.00
THEN THE SAMPLING ERROR WILL BE:
10.01

If unknown, enter 0.
Random Samples Only
90%, 95% or 99%
From pilot sample of 50 items.
Range of error (+/-) of the sample result - keep it small.

SAMPLE SIZE CALCULATION - DISCOVERY SAMPLE

IF YOUR SAMPLE TEST PLAN IS:


Population Size:
Level of Assurance:
Rate of Occurrence:
THEN THE SAMPLE SIZE SHOULD BE:

10,000
95%

3.0%
99

Required - Amounts up to 50,000


90%, 95% or 99%
Required - Up to 5%
Random Samples Only