Statistics for Data Analysis

Module Two: Sampling

Project time, energy, and resources are always constrained. Yet, demand for valid, reliable, and useful information on control systems and the data they generate is always rising. As a result, the appropriate choice and use of sampling methods tools is a core competency for all auditors, investigators, evaluators, reviewers, and analysts as they apply criteria to, determine the condition of, and make assertions about management processes and environments, especially when a balance must be struck between conflicting calls for economy, efficiency, and effectiveness.

Objectives:

Upon completion of this course, participants will be able to:

• Define the terms, concepts, parameters, and objectives of sound audit sampling.
• Develop a sampling plan based on these terms, concepts, parameters, and objectives.
• Calculate sample size, tolerable error, upper error limit, desired precision, risk of over-reliance, confidence level, margin of error, expected percent error rate, estimated population error rate, standard deviation, and confidence intervals.
• Compare and determine when to use random sampling, purposeful sampling, compliance sampling, attribute sampling, and variable sampling.
• Use information from prior work when determining sample size.
• Quantify the effect of knowing the size of the population from which samples are drawn.
• Quantify the costs and benefits of adding one more observation to a sample.
• Access and use automated tools which:
  • Establish and document key population parameters and sample statistics, including sample size, tolerable error rate, upper error limit, desired precision, risk of over-reliance, confidence level, margin of error, expected percent error rate, estimated population error rate, and confidence intervals.
  • Calculate sample size.
  • Select and test the representativeness of random samples.
  • Determine sample error rates and sample means.
  • Estimate population error rates and population means.
  • Construct confidence intervals for population error rates and population means.

Features

This course:

• Focuses on the practical aspects of sampling with very little theoretical baggage.
• Covers all three types of sampling auditors use--compliance, attribute, and variable.
• Provides automated, easily accessed and used fieldwork tools which calculate the most critical sampling parameters--sampling precision, values for z and t, confidence intervals, and extrapolations--at the most common confidence levels of 90%, 95%, 98%, and 99%.
• Is loaded with real-world audit applications.
• Fuses automation, sampling methodology, and statistics into a single, easy-to-use package.

Who should attend: Auditors, investigators, evaluators, reviewers, and analysts

Program level: Basic

Prerequisites: No prerequisites or advance preparation required

Delivery method: Group live

Recommended CPE credit: 12 to 16 hours, depending on customer needs