A new paper on arXiv details a sequential audit sampling procedure for finite populations, designed to provide auditors with reasonable assurance. The method formulates additional inspection as sequential hypothesis testing for sampling without replacement, using a tolerable deviation rate and a margin to define hypotheses and stopping boundaries. The procedure can be exact for simple random sampling via hypergeometric recursion, allowing for decisions at fixed intervals or with a maximum sample size, and can also be adapted for one-sided error control or complete examination of selected items. AI
RANK_REASON Academic paper published on arXiv. [lever_c_demoted from research: ic=1 ai=0.1]
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