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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...

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Main Authors: Abdul Hamid, Mohamad Ali, Mohamad, Shamsher, Md. Nassir, Annuar
Format: Article
Language:English
English
Published: Universiti Putra Malaysia Press 1996
Online Access:http://psasir.upm.edu.my/id/eprint/3142/1/Sarn.pling_Size_and_Auditors%27_Judgern.ents_A_Sirn.ulation.pdf
http://psasir.upm.edu.my/id/eprint/3142/
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spelling my.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
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
English
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.
format Article
author Abdul Hamid, Mohamad Ali
Mohamad, Shamsher
Md. Nassir, Annuar
spellingShingle Abdul Hamid, Mohamad Ali
Mohamad, Shamsher
Md. Nassir, Annuar
Sampling Size and Auditors' Judgments: A Simulation
author_facet Abdul Hamid, Mohamad Ali
Mohamad, Shamsher
Md. Nassir, Annuar
author_sort Abdul Hamid, Mohamad Ali
title Sampling Size and Auditors' Judgments: A Simulation
title_short 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_sort sampling size and auditors' judgments: a simulation
publisher Universiti Putra Malaysia Press
publishDate 1996
url http://psasir.upm.edu.my/id/eprint/3142/1/Sarn.pling_Size_and_Auditors%27_Judgern.ents_A_Sirn.ulation.pdf
http://psasir.upm.edu.my/id/eprint/3142/
_version_ 1643822526428610560
score 13.211869

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