NCJ Number
67927
Journal
Internal Auditor Volume: 35 Issue: 4 Dated: (AUGUST 1978) Pages: 27-44
Date Published
1978
Length
18 pages
Annotation
THIS ARTICLE REPORTS THE RESULTS OF A SURVEY OF INTERNAL AUDITORS CONCERNING THEIR USE OF STATISTICAL SAMPLING TOOLS, DISCUSSES TRENDS IN USAGE, AND GIVES SUMMARIES OF AUDIT APPLICATIONS WHERE SUCH SAMPLING WAS USED.
Abstract
INCREASED USE OF STATISTICS SAMPLING TOOLS CAN HELP AUDITORS MEET THE MANY PRESSURES ON INTERNAL AUDIT ORGANIZATIONS TO EXPAND THE SCOPE AND EFFECTIVENESS OF THEIR EFFORTS. TO ASCERTAIN HOW AND WHY INTERNAL AUDITORS USE STATISTICAL SAMPLING, QUESTIONNAIRES WERE SENT TO 340 INTERNAL AUDITORS, RANDOMLY SELECTED FROM MEMBERS OF THE INSTITUTE OF INTERNATIONAL AUDITORS WITH MANAGEMENT RESPONSIBILITIES IN THEIR ORGANIZATIONS. RESPONSES WERE RECEIVED FROM 178 INTERNAL AUDITORS, AND 127 INDICATED THEY USED STATISTICAL SAMPLING TECHNIQUES. REPLIES SHOWED THAT STATISTICAL SAMPLING WAS USED MOST FREQUENTLY IN FINANCIAL AND OPERATIONAL AUDITS; ATTRIBUTE SAMPLING WAS THE PLAN MOST USED FOLLOWED BY DISCOVERY, STOP-OR-GO, AND DOLLAR-UNIT SAMPLING. NO SIGNIFICANT DIFFERENCES WERE FOUND IN THE TYPES OF SAMPLING PLANS USED WITHIN EACH INDUSTRY. INDUSTRIES EXPECT TO USE THE TECHNIQUE MORE EXTENSIVELY IN THE FUTURE BECAUSE OF INCREASED AVAILABILITY OF TRAINING MATERIALS AND INCREASED AWARENESS GAINED THROUGH PROMOTION. DRAWBACKS INCLUDE NEED FOR FURTHER TRAINING, LARGE SAMPLE SIZE, AND DIFFICULTY IN USING STATISTICAL SAMPLING IN A NONCOMPUTERIZED ENVIRONMENT. IT WAS FOUND THAT SMALLER COMPANIES (UNDER $50 MILLION IN SALES) RARELY USED STATISTICAL SAMPLING TECHNIQUES. THERE WAS LITTLE USE OF REGRESSION ANALYSIS BUT A STRONG RELATIONSHIP BETWEEN THE USE OF AUDIT SOFTWARE AND STATISTICAL SAMPLING TECHNIQUES. THIS SUGGESTS THAT STATISTICAL SAMPLING METHODS SHOULD BE INCLUDED WHEN EVALUATING OR DEVELOPING AUDIT SOFTWARE PACKAGES. TABLES AND FOOTNOTES ACCOMPANY THE ARTICLE. (MJW)