- #HOW TO PERFORM STATISTICAL ANALYSIS IN EXCEL MANUAL#
- #HOW TO PERFORM STATISTICAL ANALYSIS IN EXCEL SOFTWARE#
- #HOW TO PERFORM STATISTICAL ANALYSIS IN EXCEL PROFESSIONAL#
If your data is not in this format, prepare them in another spreadsheet and copy them over once finished.
If you have a large amount of data, instead of spending time to select the data, it would be easier just to copy and paste the whole column and change the title if needed. The sum of the amount column (the third column) will be automatically populated in the “Population Dollar Value” field on the “Main” sheet. If you have credit and debit amounts shown at different columns, you need to convert the credit amounts to negative values and combine them under a single column. This information will be copied over to the sample list area once you click the “Generate Audit Sample” button on the “Main” sheet. name) you can paste your data and change the title. The first two columns are reference number and date columns, if you prefer them to show other contents (e.g. The “Population” sheet contains three columns. Step 1: preparing your population data on the “Population” sheet. The following is detailed explanation for each step. The “Main” sheet is where you will enter the other parameters, generate test sample and compute the percentage of misstatements and projected misstatement total. The “Population” sheet should be prepared to contain all the transactions to be sampled. The Excel spreadsheet has two sheets besides the help sheet.
#HOW TO PERFORM STATISTICAL ANALYSIS IN EXCEL MANUAL#
Please refer to chapter 17 the manual (volume II) for detail explanation of this methodology.
#HOW TO PERFORM STATISTICAL ANALYSIS IN EXCEL PROFESSIONAL#
The method used in this excel spreadsheet is based on the monetary unit sampling method described in CPEM (Canadian Professional Engagement Manual) 2012 edition. I hope this spreadsheet can help the firms in adopting a more reliable and objective statistical sampling method in their audit and to improve their audit efficiency and effectiveness. It can be modified later to fulfill their specific requirements. The spreadsheet provided here can serve as a starting point. It does not require significant investment. Excel is a common tool used by auditors and accountants all the time. The Excel spreadsheet I designed here is to demonstrate implementing statistical sampling method in Excel is possible. These firms simply rely on the random sampling method or non-statistical sampling methods in their audits. Small firms likely would not be able to afford such cost, or the cost cannot be justified by the amount of the audit work available to them.
#HOW TO PERFORM STATISTICAL ANALYSIS IN EXCEL SOFTWARE#
And the costs associated with purchasing audit software and training would be significant. It may not be feasible to implement a statistical sampling method without assist by specifically designed computer software (i.e.
In practice, implementing monetary unit sampling requires a lot of calculations. Given the difference of the sampling selection criteria on these two methods, the random sampling method would be more suitable for test of control and monetary unit sampling would be best fit for test of balances. Monetary unit sample is a value-weighted sampling that each dollar in a population has an equal chance to be selected.
Random sampling ensures that all items within a population stand an equal chance of selection. The two most commonly used statistical sampling methods are random sampling method and monetary unit sampling method. Therefore a statistical sampling method would be considered as more reliable and objective in supporting auditor’s conclusion than a non-statistical sampling method. Non-statistical sampling (even a perfectly designed) does not have such characteristic. In some circumstances, statistical sampling is more appropriate, since it can be measured and controlled. Both sampling approaches require the exercise of auditor judgment during the planning, implementation and evaluation of the sampling. There are generally two sampling approaches: statistical sampling and non-statistical sampling (e.g. The reason to use sampling is because testing of 100% of population, although would provide most assurance, sometimes it would be impossible to perform, or the cost of testing would likely exceed the expected benefit. Sampling when used in an audit is to provide a reasonable basis for the auditor to draw conclusions about the population from which the sample is selected.
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