Page 126 - JoFA_Jan_Apr23
P. 126

For many real-world
          By Changing Variable Cells input area with the
          cell reference (E6) or cell name (Planned_Total_
          Sample_Size) for the application total sample   populations, strata
          size. At the same time, the lower and upper limits
          on strata boundaries should be removed from the
          Subject to the Constraints input area by selecting   boundaries selected
          each constraint and using the Delete button.
            To ensure an efficient search process, the   via AI will yield sample
          auditor must specify upper and lower limits on
          the total sample size. To do this, click the Add
          button to bring up the Add Constraint dialog   size reductions of 50%
          box. Then add constraints for an upper limit and
          a lower limit. In our worksheet, we specified a   or more.
          sample size upper limit of n = 1,000 and a lower
          limit of n = 60. These limits are a matter of
          judgment but should be specified so the Solver
          has a reasonably wide search field. Finally, two   Once the Solver Parameters dialog box entries
          additional constraints must be added: (1) The total   are revised (see the screenshot “Solver Parameters
          sample size variable (cell E6 or Planned_Total_  Dialog Box for Sample Size Search”), click the
          Sample_Size) must be constrained to be an integer,   Solve button to begin the search for the total
          and (2) the Solver must be told to ensure that   sample size. In our application, after about 90
          the expected monetary precision (cell H19 or the   seconds of searching, the Solver recommends a total
          name Expected_Monetary_Precision) is less than   sample size of n = 77, distributed as follows: n =
          or equal to the desired monetary precision (cell E5   33 for stratum 1; n = 23 for stratum 2; and n = 21
          or the name Desired_Monetary_Precision).   for stratum 3 (see the screenshot “Solver Sample



          Solver sample size search solution






































          journalofaccountancy.com                                                               March 2023    |   35
   121   122   123   124   125   126   127   128   129   130   131