Sampling Size and Auditors' Judgments: A Simulation
Auditors usually seek cost-effective and efficient techniques to accumulate evidence in an effort tu express their opinions on financial statements. One such technique is audit sampling, and in the United Kingdom auditors use sample sizes as small as 25 items. This study uses the Monte Carlo simul...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English English |
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Universiti Putra Malaysia Press
1996
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| Online Access: | http://psasir.upm.edu.my/id/eprint/3142/1/Sarn.pling_Size_and_Auditors%27_Judgern.ents_A_Sirn.ulation.pdf |
| _version_ | 1825921600867794944 |
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| author | Abdul Hamid, Mohamad Ali Mohamad, Shamsher Md. Nassir, Annuar |
| author_facet | Abdul Hamid, Mohamad Ali Mohamad, Shamsher Md. Nassir, Annuar |
| author_sort | Abdul Hamid, Mohamad Ali |
| collection | UPM |
| description | Auditors usually seek cost-effective and efficient techniques to accumulate evidence in an effort tu express
their opinions on financial statements. One such technique is audit sampling, and in the United Kingdom
auditors use sample sizes as small as 25 items. This study uses the Monte Carlo simulation technique to
determine whether an auditor's opinion using both different sample size and error levels is within an
acceptable degree of accuracy. The results suggest that samples of fewer than 50 items are not large enough
to provide a successful sampling plan unless the error value is very low. To improve the sampling plan and
the quality of the audit, the sample size should, therefore, be increased to more than 50 items. |
| first_indexed | 2024-03-06T07:00:17Z |
| format | Article |
| id | upm.eprints-3142 |
| institution | Universiti Putra Malaysia |
| language | English English |
| last_indexed | 2024-03-06T07:00:17Z |
| publishDate | 1996 |
| publisher | Universiti Putra Malaysia Press |
| record_format | dspace |
| spelling | upm.eprints-31422013-05-27T07:06:00Z http://psasir.upm.edu.my/id/eprint/3142/ Sampling Size and Auditors' Judgments: A Simulation Abdul Hamid, Mohamad Ali Mohamad, Shamsher Md. Nassir, Annuar Auditors usually seek cost-effective and efficient techniques to accumulate evidence in an effort tu express their opinions on financial statements. One such technique is audit sampling, and in the United Kingdom auditors use sample sizes as small as 25 items. This study uses the Monte Carlo simulation technique to determine whether an auditor's opinion using both different sample size and error levels is within an acceptable degree of accuracy. The results suggest that samples of fewer than 50 items are not large enough to provide a successful sampling plan unless the error value is very low. To improve the sampling plan and the quality of the audit, the sample size should, therefore, be increased to more than 50 items. Universiti Putra Malaysia Press 1996 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/3142/1/Sarn.pling_Size_and_Auditors%27_Judgern.ents_A_Sirn.ulation.pdf Abdul Hamid, Mohamad Ali and Mohamad, Shamsher and Md. Nassir, Annuar (1996) Sampling Size and Auditors' Judgments: A Simulation. Pertanika Journal of Social Sciences & Humanities, 4 (2). pp. 175-184. ISSN 0128-7702 English |
| spellingShingle | Abdul Hamid, Mohamad Ali Mohamad, Shamsher Md. Nassir, Annuar Sampling Size and Auditors' Judgments: A Simulation |
| title | Sampling Size and Auditors' Judgments: A Simulation |
| title_full | Sampling Size and Auditors' Judgments: A Simulation |
| title_fullStr | Sampling Size and Auditors' Judgments: A Simulation |
| title_full_unstemmed | Sampling Size and Auditors' Judgments: A Simulation |
| title_short | Sampling Size and Auditors' Judgments: A Simulation |
| title_sort | sampling size and auditors judgments a simulation |
| url | http://psasir.upm.edu.my/id/eprint/3142/1/Sarn.pling_Size_and_Auditors%27_Judgern.ents_A_Sirn.ulation.pdf |
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