Using past experience to optimize audit sampling design
Résumé Optimal sampling designs for audit, minimizing the mean squared error of the estimated amount of the misstatement, are proposed. They are derived from a general statistical model that describes the error process with the help of available auxiliary information. We show that, if the model is adequate, these optimal designs based on balanced sampling with unequal probabilities are more efficient than monetary unit sampling. We discuss how to implement the optimal designs in practice. Monte Carlo simulations based on audit data from the Swiss hospital billing system confirms the benefits of the proposed method.
Mots-clés Audit Hospital bill audit Monetary unit sampling Dollar unit sampling Balanced sampling Horvitz–Thompson Estimator
Citation Marazzi, A., & Tillé, Y. (2017). Using past experience to optimize audit sampling design. Review of Quantitative Finance and Accounting, 49(2), 435-462.
Type Article de périodique (Anglais)
Date de publication 9-8-2017
Nom du périodique Review of Quantitative Finance and Accounting
Volume 49
Numéro 2
Pages 435-462
URL https://link.springer.com/article/10.1007/s11156-016-0596-7