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