Sampling for Financial and Internal Audits

URL of this document: http://www.willyancey.com/sampling-financial.htm

Disclaimer: Inclusion in this list does not imply the reference is or was a reliable authority or relevant to any particular set of facts.  Omission from this list does not imply the item was not reliable.

Maintained by Will Yancey. Please e-mail your suggestions for additions and changes to will@willyancey.com

Sections of this page:

• Cases
• General
• Materiality
• Monetary Unit Sampling (MUS)
• Overhead Cost Allocation

Related Web pages:

• Auditing
• Forensic Economics
• Sampling Design Issues in Sales and Use Tax Audits
• Sampling for Income Tax
• Sampling for Medicare and Other Claims
• Sampling in Sales and Use Tax Audits - Review Articles
• Sampling in Sales and Use Tax Audits - State-Specific References
• Sampling for Valuation
• Sampling Theory
• Statistical Education and Software
• Statistical Evidence in Litigation
• Will Yancey's Home Page

Cases

• Glenmoora Corporation v. Moore Business Forms, Inc. v. Verdesca et al., 939 F.2d 1149, (5th Cir. 1991). Court denied admission of sampling evidence from financial auditors that lacked adequate foundation in the facts of the case.

General

• Akresh, Abraham D., "Some Common Problems in Statistical Sampling Applications", 36 Internal Auditor 45 (December 1979).
• Akresh, Abraham D., "Statistical Sampling in Public Accounting", 50 The CPA Journal 20 (July 1980).
• Akresh, Abraham D., and George R. Zuber, "Exploring Statistical Sampling", 151 Journal of Accountancy 50 (February 1981).
• American Institute of Certified Public Accountants, Glossary of Statistical Terms and Bibliography on the Application of Statistical Methods to Accounting, Auditing and Management Control, (AICPA, 1958).
• American Institute of Certified Public Accountants, An Auditor's Approach to Statistical Sampling, 6 volumes, (AICPA, 1972-1974).
• American Institute of Certified Public Accountants, Audit Sampling, Audit and Accounting Guide, (AICPA, 1983).
• American Institute of Certified Public Accountants, Audit Sampling, Auditing Practice Release, (AICPA, 1999).
• American Institute of Certified Public Accountants, Audit Sampling, Audit Guide, (AICPA, 2001).
• American Institute of Certified Public Accountants, Statement on Auditing Standards No. 39: Audit Sampling, 1985. Compiled with amendments in AICPA Professional Standards, Volume 1, AU section 530.
• American Institute of Certified Public Accountants, "Audit Sampling Implementation - Questions & Answers", AICPA Technical Practice Aids , Section 8220.01 - 8220.05 (AICPA, 1992).
• Anderson, John C., and James M. Kraushaar, "Measurement Error and Statistical Sampling in Auditing: The Potential Effects", 61 Accounting Review 379 (July 1986).
• Anderson, John C., and James M. Kraushaar, "Auditing Measurement Error and Statistical Sampling: The Dependently Occurring Case", 8 Journal of Accounting, Auditing & Finance 53 (Winter 1993).
• Anonymous, "Judgment and Statistical Sampling: Drawing Accurate Conclusions", 10 Small Business Report 85 (July 1985).
• Anonymous, "A Nonstatistical Approach to Audit Sampling", 56 The CPA Journal 61 (February 1986).
• Anonymous, "Designing a Statistical Sampling Plan", 8 WG&L Accounting News 22 (Fall 1987).
• Apostolou, B. and F. Alleman, Internal Audit Sampling, (Institute of Internal Auditors, 1991).
• Arens, Alvin A., and James K. Loebbecke, Applications of Statistical Sampling to Auditing, (Prentice-Hall, 1981).
• Arens, Alvin A., and James K. Loebbecke, Auditing: An Integrated Approach, 8th Edition, (Prentice-Hall, 2000) (prior editions, 1980-1997). (Chapters 12 and 14 are on audit sampling.)
• Arkin, Herbert, Handbook of Sampling for Auditing and Accounting , 1st edition, (McGraw-Hill, 1963).
• Arkin, Herbert, Handbook of Sampling for Auditing and Accounting , 2nd edition, (McGraw-Hill, 1974).
• Arkin, Herbert, Handbook of Sampling for Auditing and Accounting , 3rd edition, (McGraw-Hill, 1984).
• Arkin, Herbert, Sampling Methods for the Auditor: An Advanced Treatment, (McGraw-Hill, 1982).
• Arkin, Herbert, Statistical Sampling Software Package: IBM Version, (McGraw-Hill Software, 1985).
• AuditNet, "How To Use Statistical Sampling", www.auditnet.org/docs/statsamp.htm
  
• Bailey, Andrew D., Jr., Statistical Auditing: Review, Concept, and Problems, (Harcourt Brace, 1981).
• Bailey, Larry P., Statistical Sampling for Attributes, (Miller Accounting Publications, ---).
  
• Baker, Revenor C., "Determining Sample Size", 34 Internal Auditor 36 (August 1977).
• Baker, R. L., and R. M. Copeland, "Evaluation of the Stratified Regression Estimator for Auditing Accounting Populations", 17 Journal of Accounting Research 606 (Autumn 1979).
• Barnett, Andrew H., and William J. Read, "Sampling in Small Business Audits", 161 Journal of Accountancy 78 (1986).
• Batcher, Mary K., and Yan Liu, "Meeting the Sampling Needs of Business", 2000 Proceedings of the American Statistical Association Section on Survey Research Methods, (2000).
• Boughton, Charles M., "Combining the Efforts of Internal and Independent Auditors: Using EDP to Maximize Audit Resources", 49 Woman CPA 26 (January 1987).
• Brown, R. G., and L. L. Vance, Sampling Tables for Estimating Error Rates of Proportions, (University of California, Berkeley, 1961).
• Burstein, Herman, "The 'Ratio Estimate': A Useful Sampling Technique", 52 The CPA Journal 844 (November 1967).
• Burstein, Herman, Attribute Sampling, (McGraw-Hill, 1971).
• Carmichael, Douglas R., "Tests of Transactions - Statistical and Otherwise", 72 Journal of Accountancy 36 (February 1968).
• Carpenter, Brian, and Mark W. Dirsmith, "Sampling and the Abstraction of Knowledge in the Auditing Profession: An Extended Institutional Theory Perspective", 18 Accounting Organizations & Society 41 (January 1993).
• Chaffin, Wilkie W., and S. S. Chitgopekar, "Verification of Existing Inventory Records in Bankruptcy Cases by Using Simple and Stratified Random Sampling", 93 Commercial Law Journal 92 (Spring 1988).
• Coen, Charles D., Statistical Sampling for Bank Auditors , (Bank Administration Institute, 1973).
• Colbert, Janet L., "Statistical or Non-Statistical Sampling: Which Approach Is Best?" 7 Journal of Applied Business Research 117 (Spring 1990-1991).
• Conley, Harry, and Lou Finks, Using Statistical Sampling , (1998).
• Copeland, Ronald M., and Ted D. Engelbrecht, "Statistical Sampling: An Uncertain Defense Against Legal Liability", 45 CPA Journal 23 (November 1975).
• Coderre, David G., CAATTs & Other BEASTs for Auditors, 2nd edition, (Global Audit Publications, a division of ACL, 1996). [CAATs are Computer Assisted Audit Tools and Techniques. BEASTs are Beneficial Electronic Audit Support Tools.]
• Cox, D. R., and E. J. Snell, "On Sampling and the Estimation of Rare Errors", 66 Biometrika 125 (1979).
• Cyert, Richard M., and H. Juston Davidson, Statistical Sampling for Accounting Information, (Prentice-Hall, 1962).
• Defense Contract Audit Agency, "Statistical Sampling Techniques," DCAA Contract Audit Manual, Appendix B,  http://www.dcaa.mil/cam/Appendix_B_-_Statistical_Sampling_Techniques.pdf
• Deming, W. Edwards, Sample Design in Business Research, (Wiley, 1960).
• Durnil, James, and Peter Millspaugh, "Government Auditing and Legal Liability", 37 Government Accountants Journal 27 (Fall 1988).
• Elliott, Robert K., and John R. Rogers, "Relating Statistical Sampling to Audit Objectives", 134 Journal of Accountancy 46 (July 1972).
• Epstein, Barry Jay, "Attributes Sampling: A Local Firm's Experience", 161 Journal of Accountancy 130 (January 1986).
• Ernst & Whinney, Audit Sampling, (1980).
• Falk, Eric, Joomi Kim, and Wendy Rotz, "Minimum Sample Sizes with Rare Events in Stratified Designs", 2004 Proceedings of the American Statistical Association Section on Business & Economics Statistics 1174, (JSM 2004).
• Fienberg, Stephen E., John Neter, and R. A. Leitch, "Estimating the Total Overstatement Error in Accounting Populations", 72 Journal of the American Statistical Association 295 (1977).
• Frost, Peter A., and Hirokuni Tamura, Hirokuni, "Accuracy of Auxiliary Information Interval Estimation in Statistical Auditing", 24 Journal of Accounting Research 57 (Spring 1986).
• Giese, Michael D., and Richard N. Lemieux, "Introducing Sampling Techniques", 5 Internal Auditing 77 (Fall 1989).
• Government Accountability Office (GAO), GAO/PCIE Financial Audit Manual, Volume I, Section 400, Testing Phase, revised July 2001, http://www.gao.gov/special.pubs/gaopcie/vol1_section400.pdf
• Guy, Dan M., Statistical Sampling in Auditing, (Wiley, 1981).
• Guy, Dan M., Douglas R. Carmichael, and O. Ray Whittington, Audit Sampling: An Introduction, 5th edition, (Wiley, 2001).
• Guy, Dan M., Douglas R. Carmichael, and O. Ray Whittington, Practitioner's Guide to Audit Sampling, (Wiley, 1998).
• Hall, Thomas W., J. Hunton, and Bethane Jo Pierce,"The Use of and Selection Biases Associated with Nonstatistical Sampling in Auditing", 12 Behavioral Research In Accounting 231, (2000).
• Haskins & Sells, Audit Sampling, A Programmed Instruction Course, (Haskins & Sells, 1970).  [Haskins & Sells was an accounting firm that became part of Deloitte Touche.]
• Henry, G. T., Practical Sampling, (Sage, 1991).
• Hill, Henry P., Joseph L. Roth, and Herbert Arkin, Sampling in Auditing: A Simplified Guide and Statistical Tables, (Ronald Press Company, 1962).
• Hitzig, Neal B., "Statistical Sampling Revisited", 74 The CPA Journal 30, (2004), www.nysscpa.org/cpajournal/2004/504/essentials/p30.htm
• Information Systems Audit and Control Association & Foundation, "Audit Sampling", www.isaca.org/standard/guide13.htm
• Institute of Internal Auditors, Sampling Manual for Auditors, (IIA, 1967).
• Institute of Internal Auditors, Supplement for Sampling Manual for Auditors, (IIA, 1971).
• Institute of Internal Auditors, 404 Sample Size Survey, (IIA, 2004) at www.theiia.org/gain/404sample_results.html
• Ijiri, Yuji, and Robert S. Kaplan, "The Four Objectives of Sampling in Auditing: Representative, Corrective, Protective, and Preventive", 52 Management Accounting 42 (December 1970).
• International Federation of Accountants - International Auditing Practices Committee (IAPC), International Standards on Auditing (ISA) 530: Audit Sampling and Other Selective Testing Procedures, 1997.
• Jones, Peter, Statistical Sampling and Risk Analysis in Auditing, (Gower Publishing Limited (Hampshire, England), 1999).
• Kaplan, Robert S., "Statistical Sampling in Auditing with Auxiliary Information Estimators", 11 Journal of Accounting Research 238 (1973).
• Kell, Walter G. and William C. Boynton, Modern Auditing and AudSamp:  Statistical Sampling Templates for Lotus 1-2-3 to Accompany Modern Auditing, 6th edition, (Wiley, 1997).
  
• Kinney, William R., Jr., editor, Fifty Years of Statistical Auditing, (Garland, 1986).
• KPMG et al, A Framework for Evaluating Process/Transaction-Level Exceptions and Deficiencies, version 1, October 28, 2004
• Knight, P., "Statistical Sampling in Auditing: an Auditor's Viewpoint," 28 The Statistician 253 (1979).   [See companion article from statistician's viewpoint by T. M. F. Smity cited below.]
• Kvanli, Alan H., and James E. Foster, "Warning Signals -- Misleading Statistical Samples", 35 Government Accountants Journal 34 (Winter 1986-1987).
• Kvanli, Alan H., Janet Fowler, and James E. Foster, "Warning! Some Misleading Statistical Sampling Formulas,"  41 Government Accountants Journal 49 (Winter 1992).
• Kvanli, Alan H., and Robert Schauer, "The Bootstrap: What the Government Auditor Should Know", 51 Journal of Government Financial Management 24 (Fall 2002).
• Leavy, John O., "Reducing the Cost of Auditing Dispersed Operations", 3 Journal of Accounting & EDP 41 (Summer 1987).
• Liu, Yan, and Mary K. Batcher, "Ratio Estimation of Small Samples Using Deep Stratification", 2002 Proceedings of the American Statistical Association Section on Survey Research Methods, (2002).
• Liu, Yan, Mary K. Batcher, and Fritz Scheuren, "Efficient Audit Sampling Design in Ratio Type Data", 2003 Proceedings of the American Statistical Association Section on Survey Research Methods, (2003).
• Liu, Yan, Mary K. Batcher, and Fritz Scheuren, "Efficient Sampling Design in Audit Data", 3(3) Journal of Data Science 213 (July 2005); www.sinica.edu.tw/~jds/JDS-222.pdf
• Loebbecke, James K., and John Neter, "Considerations in Choosing Statistical Sampling Procedures in Auditing", 13 Journal of Accounting Research 1338 (Supplement 1975). Discussant comments at pp. 1353-1369.
• Maertens, Peter J., "Simplified Statistical Sampling for Post Audit Work", 12 International Journal of Government Auditing 11 (January 1985).
• Mandel, Benjamin J., "What to Teach Auditors About Statistical Sampling - And How", 38 Government Accountants Journal 63 (Spring 1989).
• McEacharn, Michelle and Bruce Wampler, "A Customized Spreadsheet for Tests of Controls: Random Sampling", 72(4) The CPA Journal 58 (April 2002) http://www.nysscpa.org/cpajournal/2002/0402/dept/d045802.htm .
• McKee, Thomas E., "Applying SAS 47 Audit Risk Requirements", 44 Ohio CPA Journal 19 (Spring 1985).
• McNamee, Fran and David, Simple Samples for Auditors, (Mc2 Management Consulting, 1996), mc2consulting.com/samples.htm .
• McRae, Thomas W., Statistical Sampling for Audit and Control, (Wiley, 1974).
• Meikle, Giles R., Statistical Sampling in an Audit Context, (Canadian Institute of Chartered Accountants, 1972).
• Moeller, Robert R., Brink's Modern Internal Auditing, 5th ed., (Wiley, 1999).  (Chapter 13 discusses audit sampling.)
• Myers, Carol A., "Determining Nonstatistical (Judgmental) Sample Sizes", 49 The CPA Journal 72 (October 1979).
• National Audit Office of the United Kingdom, A Practical Guide to Sampling, (London: NAO, 2000),  www.nao.gov.uk/publications/Samplingguide.pdf
• National Research Council, Statistical Models and Analysis in Auditing: A Study of Statistical Models and Methods for Analyzing Nonstandard Mixtures of Distributions in Auditing, Report of the Committee on Applied and Theoretical Statistics - Panel on Nonstandard Mixtures of Distributions (1988), http://www.nap.edu/catalog/1363.html
• Neter, John, ""How accountants save money by sampling", In J. M. Tamur et al. (editors), Statistics: A Guide to the Unknown, (Holden-Day, 1972).
  
• Neter, John, and James K. Loebbecke, Behavior of Major Statistical Estimators in Sampling Accounting Populations: An Empirical Study, Auditing Research Monograph No. 2, (AICPA, 1975).
• Newman, Maurice S., Financial Accounting Estimates Through Statistical Sampling by Computer, (Wiley, 1976).
• Newman, Maurice S., Accounting Estimates by Computer Sampling, 2nd edition, (Wiley, 1982).
• Nigrini, Mark J., Digital Analysis Using Benford's Law: Test Statistics for Auditors, Second Edition, (Global Audit Publications, 2001), http://www.nigrini.com/data_analysis_books.htm
  
• Office of Comptroller of the Currency, Comptroller's Handbook: Sampling Methodologies, August 1998,  www.occ.treas.gov/handbook/sampmeth.pdf
• Office of Management and Budget, OMB Circular No. A-21: Cost Principles for Educational Institutions, www.whitehouse.gov/omb/circulars/a021/a021.html , (revised August 8, 2000).  Mentions use of statistical sampling in cost analysis studies.
• Appendix includes Cost Accounting Standard 9905.501, Techniques for application (c), "... Therefore, the amount of accounting and statistical detail to be required and maintained in accounting for estimated costs has been and continues to be a matter to be decided by Government procurement authorities on the basis of the individual facts and circumstances."
• Panel on Nonstandard Mixtures of Distributions, "Statistical Models and Analysis in Auditing", 4 Statistical Science 2 (1989). Report of a distinguished panel of statisticians sponsored by the National Research Council.
• Ponemon L., and J. Wendell, “Judgmental Versus Random Sampling in Auditing: An Experimental Investigation,” 13 Auditing: A Journal of Practice and Theory 17 (Fall 1995).
• Porter, Brenda, Jon Simon, David J. Hatherly, Principles of External Auditing, (Wiley, 1996).  (Chapter 11 has an introduction to audit sampling.)
• Radziewicz, Frank, and Carolyn McWilliams, "Let a Computer Ease Your Audit Tasks", 4 Computers in Accounting 60 (March 1988).
• Randell, Boyd, and Paul Frishkoft, "An Examination of the Status of Probability Sampling in the Courts", In H. Stettler, editor, Auditing Symposium III (University of Kansas, 1977).
• Read, William J., "An Analysis of Auditor Judgment In Nonstatistical Sampling", 6 Advances In Accounting 251 (1988).
• Reneau, James, "Guidelines for Selecting Sampling Procedures", 37 Internal Auditor 77 (June 1980).
• Rittenberg, L., and Schwieger, Auditing: Concepts for a Changing Environment, Second Edition, (Dryden Press, 1997).
• Roberts, Donald M., Statistical Auditing, (AICPA, 1978).
• Robertson, Jack C., and Frederick G. Davis, "How to Evaluate Internal Control by Using Statistical Sampling", 19 Practical Accountant 36 (September 1986).
• Robertson, Jack C., and Timothy J. Louwers, Auditing, 9th edition, (Irwin/McGraw-Hill, 1999).  [Chapter 7, Module A, and Module B are on audit sampling.]
• Rotz, Wendy, Eric Falk, Ryan Petska, and Steve Miller, "Combined PPS and Stratified Sampling in Modern Tax Audits", 2004 Proceedings of the American Statistical Association Section on Business & Economics Statistics 1310, (JSM 2004).
• Rotz, Wendy, Eric Falk, and Archana Joshee, "A Comparison of Random Number Generators Used in Business - 2004 Update", 2004 Proceedings of the American Statistical Association Section on Business & Economics Statistics 1316, (JSM 2004).
• Sawyer, Lawrence B., "The Lawyer, the Statistician, and the Internal Auditor", 24 Internal Auditor 9 (Summer 1967).
• Sawyer, Lawrence B., "Simple Sampling: How to Stop Worrying and Learn to Love Statistical Tables", 25 Internal Auditor 9 (July-August 1968).
• Sawyer, Lawrence B., The Practice of Modern Internal Auditing, Chapter 9, Audit Sampling, (Institute of Internal Auditors, 1988).
• Schreiner, Mark, "Statistical Sampling to Measure Portfolio at Risk in Microfinance", Washington University in St. Louis, Center for Social Development, working paper, (September 2003), www.microfinance.com/English/Abstracts/Audit_Sampling.htm
  
• Schwartz, Donald A., "Audit Sampling - A Practical Approach", 67 The CPA Journal 56 (February 1997).
• Schwartz, Donald A., "Computerized Audit Sampling", 68 The CPA Journal 46 (November 1998), www.nysscpa.org/cpajournal/1998/1198/Features/f461198.html
  
• Smith, T. M. Fred, Statistical Sampling for Accountants, (London: Accountancy Age Books, 1976).
  
• Smith, T. M. Fred, "Statistical Sampling in Auditing: A Statistician's Viewpoint," 28 The Statistician 267 (1979). [See companion article from auditor's viewpoint by P. Knight cited above.]
• Steele, Anthony, Audit Risk and Audit Evidence: The Bayesian Approach to Statistical Auditing, (Academic Press, 1992).
• Stepnick, Edward W., "The Nitty-Gritty and Hurly-Burly of Government Auditing: It's All in My Working Papers", 36 Government Accountants Journal 1 (Winter 1987/1988).
• Stringer, K. W., "Practical Aspects of Statistical Sampling in Auditing," in Proceedings of the Business and Economics Section, 1963, (American Statistical Association, 1963), pp. 405-411.
  
• Sullivan, Jerry D., Richard A. Gnospelius, Philip L. Defliese, and Henry R. Jaenicke. Montgomery's Auditing, (Wiley, 1985).  [Chapters 12 and 13 describe audit sampling.]
  
• Taylor, Robert G., "Error Analysis in Audit Tests", 137 Journal of Accountancy 78 (May 1974).
• Thompson, James H., and Bart H.Ward, "Statistical Risk Control Strategies Used to Evaluate Substantive Audit Tests", 8 Managerial Auditing Journal 3 (Issue 4, 1993).
• Thornton, Billy M., CPA Review: Quantitative Methods and Statistical Sampling, (Worthington, Ohio: McHugh Publishing, 1978).
• Trueblood, Robert M., and R. M. Cyert, Statistical Sampling for Auditors and Accountants, (Wiley, 1956).
• Tucker, James J., III, and Frank C. Lordi, "Early Efforts of the U.S. Public Accounting Profession to Investigate the Use of Statistical Sampling,", 24 Accounting Historians Journal 93 (June 1997).
• Uecker, Wilfred C., and Kinney, William R., Jr., "Judgmental Evaluation of Sample Results: A Study of the Type and Severity of Errors Made by Practicing CPA's," 2 Accounting, Organizations and Society 269 (1977).
• United States Congress, House Committee on Government Operations, Executive and Legislative Reorganization Subcommittee, Statistical Sampling in the Examination of Vouchers, Hearings on May 27, 1964 (GPO, 1964, microform by Greenwood Press, 1973).
• United States Custom Service, Focused Assessment Program, Exhibit 6A, Sampling Technical Guide, http://www.customs.ustreas.gov/linkhandler/cgov/import/reg_audit/archive/fap_documents/exhibit6b.ctt/exh6a.pdf .
• University of Illinois, Office of University Audits, Audit Manual Section 3200, Audit Sampling.
• Uyeda, Susumu, "Statistical Sampling Procedures in Examination of Vouchers", GAO Review (Winter 1968).
• Vanassee, Robert W., Statistical Sampling for Auditing and Accounting Decisions: A Simulation, 1st ed., (McGraw-Hill, 1968).
• Vanassee, Robert W., Statistical Sampling for Auditing and Accounting Decisions: A Simulation, 2nd ed., (McGraw-Hill, 1976).
• Vance, Lawrence Lee, and John Neter, Statistical Sampling for Auditors and Accountants, (Wiley, 1956).
• Viator, Ralph E., and C. Douglas Poe, "Statistical Sampling Software for Auditing", 167 Journal of Accountancy 143 (May 1989).
• Wampler, Bruce, and Michelle McEachern, "Customized Tables for Tests of Controls: A Spreadsheet", 71(2) The CPA Journal 48 (February 2001), http://www.nysscpa.org/cpajournal/2001/0200/dept/d024801.htm .
• Wampler, Bruce, and Michelle McEachern, "Controlling Sampling Risk in Tests of Controls: Implications for Auditors and Management," 32 Today's CPA 38 (March/April 2005). [Excel template for sample size determination of alpha and beta risk at http://www.tscpa.org/welcome/worksheet.xls ]
• Warren, Carl S., Stephen V. N. Yates, and George R. Zuber, "Audit Sampling: A Practical Approach", 153 Journal of Accountancy 62 (January 1982).
• Wendell, John P., and Josef Schmee, "Audit Specific Calibration of a Sample Evaluation Method Using Computer Modeling", 12 Auditing: A Journal of Practice and Theory 121 (Fall 1993).
• Wheeler, Steve, Dusenbury, Richard B., and Jane Reimers, “Projecting Sample Misstatements to Audit Populations: Theoretical, Professional, and Empirical Considerations,” 28 Decision Sciences, 261 (Spring 1997).
• Whittington, O. Ray, and Kurt Pany, Principles of Auditing, 12th edition, (Irwin/McGraw-Hill, 1998).
• Wilburn, Arthur J., Practical Statistical Sampling for Auditors , (Marcel Dekker, 1984).
• Williams, B., A Sampler on Sampling, (Wiley, 1978).
• Willson, James D., and Steven J. Root, Internal Auditing Manual, Chapter 15, Audit Sampling, (Warren, Gorham, and Lamont, 1989).

Materiality

• Auditing Standards Board, Statement on Auditing Standards No. 47: Audit Risk and Materiality in Conducting an Audit.
• Australian Educational Research Pty Ltd., "Glossary of auditing terms - Reporting materiality", Activity Based Risk Evaluation Model of Auditing, (2000), www.abrema.net/abrema/materiality_g.html
• Chartered Financial Analyst (CFA) Institute, A Comprehensive Business Reporting Model: Financial Reporting for Investors, October 24, 2005, http://www.cfapubs.org/doi/pdf/10.2469/ccb.v2005.n4.4001
• Page 5: "Investors' wealth assessments must determine the materiality threshold."
• Page 14: "The use of arbitraty quantitative thresholds, such as 5 percent of some income statement number, does not serve investor interests. We believe that if there is doubt about materiality, the item should receive separate recognition and measurement, accompanied by sufficient disaggregated disclosure."
• Committee on Capital Markets Regulation, "Interim Report", (November 30, 2006), www.capmktsreg.org/research.html. Pages 128-132 discuss materiality.
• Dombrowski, Bob, "Audit Risk and Materiality", (August 1999), http://facultyfp.salisbury.edu/rfdombrowski/
• Holder, William W., Kenneth R. Schermann, and Ray Whittington, "Materiality Considerations," 196(5) Journal of Accountancy 61 (November 2003).
• Højskov, L., "An Exploratory Survey on Materiality Among Financial Analysts and Auditors in Denmark," 20th Annual Congress of the European Accounting Association,  www.bham.ac.uk/EAA/eaa97/abstracts/HOJS.HTM
• Icerman, Rhoda C., and William Hillison, "Risk and Materiality in Governmental Audits," 38 Association of Government Accountants Journal 51 (Fall 1989).
• Jennings, M. M., P. M. Reckers, and D. Kneer, "A Source of Insecurity: A Discussion and Empirical Examination of Standards of Disclosure and Levels of Materiality in Financial Statements," Journal of Corporation Law, (Spring 1985).
• Leslie, D. A., Materiality: The Concept and Its Application to Auditing, (Canadian Institute of Chartered Accountants, 1985).
• Raman, K K., and Relmond P. Van Daniker, "Materiality in Government Auditing", 177 Journal of Accountancy 71 (February 1994).
• Read, William J., John E. Mitchell and Abraham D. Akresh,"Planning Materiality and SAS 47," 164 Journal of Accountancy 72, (December 1987).
• Securities and Exchange Commission, SEC Staff Accounting Bulletin No. 99 - Materiality, 17 CFR Part 211, Release No. SAB 99, (August 12, 1999), http://www.sec.gov/interps/account/sab99.htm
• Vorhies, James Brady, "The New Importance of Materiality," 199(5) Journal of Accountancy 53 (May 2005), http://www.aicpa.org/pubs/jofa/may2005/vorhies.htm
  

Monetary Unit Sampling (also known as dollar unit sampling)

• Anderson, Rodney J., and Albert D. Teitlebaum, "Dollar Unit Sampling: A Solution to the Audit Sampling Dilemna," 102 Canadian Chartered Accountant 30 (April 1973).
• Anderson, Rodney J., Donald A. Leslie, and Albert D. Teitlebaum, Dollar Unit Sampling: A Practical Guide for Auditors, (CCH, 1979).
• Hall, Thomas W., Bethane Jo Pierce, and W. R. Ross, "Planning Sample Sizes for Stringer-Method Monetary Unit and Single-Stage Attribute Sampling Plans," 8 Auditing: A Journal of Practice & Theory 64, (Spring 1989).
• Harwood, Gordon B.. George J.  Davis, and Paul D. Borowski, "Save Time with Computerized Dollar-Unit Sampling", 44 Internal Auditor 41 (April 1987).
• Horgan, Jane M., "The Moment Bound with Unrestricted Random, Cell and Sieve Sampling of Monetary Units", 26 Accounting and Business Research 215 (1996).
• Horgan, Jane M., "Stabilising the Sieve Sample Size Using PPS", 16(2) Auditing: A Journal of Practice and Theory 40 (Fall 1997).
• Horgan, Jane M., "Stabilised Sieve Sampling: A Point Estimator Analysis", 16 Journal of Business and Economic Statistics 42 (January 1998).
• Horgan, Jane M., "Hands on!  Here comes the bug!", 31 Accountancy Ireland 20 (April 1999). (discusses monetrary unit sampling)
• Leichti, Janet L., "An Introduction to Dollar Unit Sampling", 48 Woman CPA 4 (January 1986).
• Leslie, Donald A., Albert D. Teitlebaum, and Rodney J. Anderson, Dollar-Unit Sampling: A Practical Guide for Auditors, (Copp Clark Pitman, 1979).
• Neter, John, R. A. Leitch, and Stephen E. Fienberg, "Dollar Unit Sampling: Multinomial Bounds for Total Overstatement and Understatement Errors," 53 Accounting Review 77 (1978).
• Rohrbach, Kermit John, "Monetary Unit Acceptance Sampling", 24 Journal of Accounting Research 127 (Spring 1986).
• Wampler, Bruce and Michelle McEacharn, "A Monetary-Unit Sampling Using Microsoft Excel", 75(5) The CPA Journal 36, (May 2005) http://www.nysscpa.org/cpajournal/2005/505/essentials/p36.htm .
• Willits, Stephen D., and Thomas E. McCaslin, "Information Systems: Micro Simplifies Dollar-Unit Sampling", 42 Internal Auditor 62 (June 1985).

Overhead Cost Allocation

Cases

• Michigan Department of Education v. US Department of Education, 875 F.2d 1196 (6th Cir. 1989).

Other

• Office of Management and Budget, OMB Circular No. A-21: Cost Principles for Educational Institutions, www.whitehouse.gov/omb/circulars/a021/a021.html , (revised August 8, 2000).  Mentions use of statistical sampling in cost analysis studies.
• Appendix includes Cost Accounting Standard 9905.501, Techniques for application (c), "... Therefore, the amount of accounting and statistical detail to be required and maintained in accounting for estimated costs has been and continues to be a matter to be decided by Government procurement authorities on the basis of the individual facts and circumstances."

Maintained by Will Yancey. Please e-mail any comments or suggestions to will@willyancey.com