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TABLE 9-3 Monetary Unit Sampling Misstatement Factors for Sample Evaluation Number of Misstatements | 90% Desired Confidence Level Misstatement Factor | 90% Desired Confidence Level Incremental Increase | 95% Desired Confidence Level Misstatement Factor | 95% Desired Confidence Level Incremental Increase ---|---|---|---|--- 0 | 2.3 | | 3.0 | 1 | 3.9 | 1.6 | 4.7 | 1.7 2 | 5.3 | 1.4 | 6.2 | 1.5 3 | 6.6 | 1.3 | 7.6 | 1.4 4 | 7.9 | 1.3 | 9.0 | 1.4 5 | 9.1 | 1.2 | 10.3 | 1.3 6 | 10.3 | 1.2 | 11.5 | 1.2 The misstatement factors in Table 9-3 are based on computed upper deviation rate factors used in attribute sampling (based on the binomial distribution). In MUS, the sampling interval and the tainting factor are used in the evaluation, and as later illustrated, the original computed sample size is not used in the evaluation approach when using the attribute sampling tables. When the population is large and the misstatement rate is low (both common for MUS applications using accounting data), the limiting form of the binomial distribution is the Poisson distribution, which only requires the level of confidence to determine the appropriate misstatement factor to compute the upper misstatement limit (see Leslie et al., 1979, Dollar Unit Sampling). The Poisson distribution factors are nearly identical to the misstatement factors in Table 9-3.

          TABLE 9-3 Monetary Unit Sampling Misstatement Factors for Sample Evaluation

Number of Misstatements | 90% Desired Confidence Level Misstatement Factor | 90% Desired Confidence Level Incremental Increase | 95% Desired Confidence Level Misstatement Factor | 95% Desired Confidence Level Incremental Increase
---|---|---|---|---
0 | 2.3 | | 3.0 |
1 | 3.9 | 1.6 | 4.7 | 1.7
2 | 5.3 | 1.4 | 6.2 | 1.5
3 | 6.6 | 1.3 | 7.6 | 1.4
4 | 7.9 | 1.3 | 9.0 | 1.4
5 | 9.1 | 1.2 | 10.3 | 1.3
6 | 10.3 | 1.2 | 11.5 | 1.2

The misstatement factors in Table 9-3 are based on computed upper deviation rate factors used in attribute sampling (based on the binomial distribution). In MUS, the sampling interval and the tainting factor are used in the evaluation, and as later illustrated, the original computed sample size is not used in the evaluation approach when using the attribute sampling tables. When the population is large and the misstatement rate is low (both common for MUS applications using accounting data), the limiting form of the binomial distribution is the Poisson distribution, which only requires the level of confidence to determine the appropriate misstatement factor to compute the upper misstatement limit (see Leslie et al., 1979, Dollar Unit Sampling). The Poisson distribution factors are nearly identical to the misstatement factors in Table 9-3.

TABLE 9-3 Monetary Unit Sampling Misstatement Factors for Sample Evaluation

Number of Misstatements | 90% Desired Confidence Level Misstatement Factor | 90% Desired Confidence Level Incremental Increase | 95% Desired Confidence Level Misstatement Factor | 95% Desired Confidence Level Incremental Increase
—|—|—|—|—
0 | 2.3 | | 3.0 |
1 | 3.9 | 1.6 | 4.7 | 1.7
2 | 5.3 | 1.4 | 6.2 | 1.5
3 | 6.6 | 1.3 | 7.6 | 1.4
4 | 7.9 | 1.3 | 9.0 | 1.4
5 | 9.1 | 1.2 | 10.3 | 1.3
6 | 10.3 | 1.2 | 11.5 | 1.2

The misstatement factors in Table 9-3 are based on computed upper deviation rate factors used in attribute sampling (based on the binomial distribution). In MUS, the sampling interval and the tainting factor are used in the evaluation, and as later illustrated, the original computed sample size is not used in the evaluation approach when using the attribute sampling tables. When the population is large and the misstatement rate is low (both common for MUS applications using accounting data), the limiting form of the binomial distribution is the Poisson distribution, which only requires the level of confidence to determine the appropriate misstatement factor to compute the upper misstatement limit (see Leslie et al., 1979, Dollar Unit Sampling). The Poisson distribution factors are nearly identical to the misstatement factors in Table 9-3.

Added by Araceli O.

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