Increasing the Precision in Estimating the Accounting Misstatements using Stratified Sampling
Author:
Univ. Prof. Emeritus Elisabeta JABA, Ph. D.; Ioan-Bogdan ROBU, Ph. D.; Mihaela-Alina ROBU, Ph. D. Student
JEL:
C13, C83, M41, M42
DOI:
Keywords:
financial auditing, accounting misstatement, statistical sampling, statistical estimation, accuracy, precision, stratified survey
Abstract:
The auditor`s opinion is based on obtaining sufficient and appropriate audit evidence regarding the preparation and presentation of financial statements. Since an exhaustive testing of accounts and classes of transactions can’t be carried out because of financial, time and human resources restrictions, the auditor may use statistical sampling techniques and specific procedures for achieving the intended results. Accuracy and precision of the estimated results are influenced by the representativeness of the sample, extracted according to stratification criteria set by the auditor. The purpose of this study is to estimate the accounting misstatements related to accounts receivables, using the data recorded on a stratified sample of customers. The study objectives were to determine the sample size proposed for testing the customers, according to stratification criteria, the sample extraction using SPSS 20.0, the estimation of the accounting misstatements in the accounts receivable for all population and for the stratified groups.