Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

Measurement Error and Statistical Sampling in Auditing: The Potential Effects

John C. Anderson and James M. Kraushaar
The Accounting Review
Vol. 61, No. 3 (Jul., 1986), pp. 379-399
Stable URL: http://www.jstor.org/stable/247148
Page Count: 21
  • Subscribe ($19.50)
  • Cite this Item
Measurement Error and Statistical Sampling in Auditing: The Potential Effects
Preview not available

Abstract

The auditing profession, in its use of existing statistical estimators and statistical procedures, has been assuming implicitly that the effect of nonsampling error on these estimators and procedures is negligible. This study investigates the potential effect of one type of nonsampling error, errors of measurement on the part of the auditor, on the behavior of alternative estimators and statistical sampling procedures in a Monte Carlo simulation study. The results indicate that the potential existence of independently occurring measurement error can significantly affect the auditor's statistical results and that the actual warranted level of confidence obtained by a statistical procedure may often be far below the desired level of confidence.

Page Thumbnails

  • Thumbnail: Page 
379
    379
  • Thumbnail: Page 
380
    380
  • Thumbnail: Page 
381
    381
  • Thumbnail: Page 
382
    382
  • Thumbnail: Page 
383
    383
  • Thumbnail: Page 
384
    384
  • Thumbnail: Page 
385
    385
  • Thumbnail: Page 
386
    386
  • Thumbnail: Page 
387
    387
  • Thumbnail: Page 
388
    388
  • Thumbnail: Page 
389
    389
  • Thumbnail: Page 
390
    390
  • Thumbnail: Page 
391
    391
  • Thumbnail: Page 
392
    392
  • Thumbnail: Page 
393
    393
  • Thumbnail: Page 
394
    394
  • Thumbnail: Page 
395
    395
  • Thumbnail: Page 
396
    396
  • Thumbnail: Page 
397
    397
  • Thumbnail: Page 
398
    398
  • Thumbnail: Page 
399
    399