What are the methods of simulating traditional variable sampling in audit examination?

Traditional variable sampling includes mean method, difference method and ratio method.

1. average method

Definition: The certified public accountant first calculates the average value of the approved amount of all items in the sample, and then multiplies the average value of this sample by the overall size to get the estimated value of the overall amount. The difference between the estimated total amount and the book total amount is the inferred overall misstatement.

formula

(1) Average sample approval amount = sample approval amount ÷ sample amount.

② Estimated total amount = average value of sample approval amount × total size

③ Inferred total misstatement = total book amount-estimated total amount

2. Difference method

Definition: CPA first calculates the average difference between the sample audit amount and the book amount, and then multiplies the average difference by the overall size to find out the difference between the overall audit amount and the book amount (that is, the overall misstatement).

formula

① Average sample misstatement = (sample book amount-sample approved amount) ÷ sample amount

② Inferring overall misstatement = average sample misstatement × overall size

③ Estimated total amount = total book amount-inferred misstatement total amount

3. Ratio method

Definition: The certified public accountant first calculates the ratio of the authorized amount of the sample to the book amount, and then multiplies this ratio by the overall book amount to get the estimated book amount.

formula

① Ratio = sample approved amount ÷ sample book amount

② Estimated total amount = total book amount × ratio

③ Inferring overall misstatement = overall book amount-global online schools share the estimated overall amount.