Variables Sampling Simulator
An Interactive Guide to Substantive Testing of Account Balances
Module 1: Understanding Variables Sampling Plans
Variables sampling is used to estimate a numerical value, like an account balance. Auditors use different methods to project the "true" value of a population based on a sample.
Mean-Per-Unit (MPU) Estimation
Calculates the average audited value of the items in the sample and multiplies it by the total number of items in the population to estimate the total population value.
Ratio Estimation
Uses the ratio of the sample's total audited value to its total book value. This ratio is then applied to the entire population's book value. Most efficient when errors are proportional to book values.
Difference Estimation
Calculates the average difference between audited and book values in the sample. This average difference is then projected to the entire population to estimate the total misstatement.
Module 2: Sample Size Factors
The size of the sample is driven by several key judgments and characteristics. Use the sliders to see how each factor impacts the required sample size.
The maximum error you can accept. (Higher amount = smaller sample)
Your best guess of the error before you start. (Higher amount = larger sample)
How spread out the values are. (Higher variability = larger sample)
Calculated Sample Size:
125
Module 3: Evaluate Sample Results & Project Misstatement
After auditing the sample items, the auditor projects the findings to the entire population to estimate the total misstatement. This projected misstatement is then compared to the tolerable misstatement. Click the button to evaluate the sample results below.
