Stop-or-go sampling

Stop-or-go sampling, also known as sequential sampling, is a method used primarily in auditing to determine whether a population (like a set of financial transactions) contains a high number of errors. Here are the key points about stop-or-go sampling:

Purpose: The main goal is to minimize the amount of sampling needed to reach a conclusion about the population. This method is particularly useful when the expected error rate is low

Process:

  • Initial Sample Size: Auditors start with an initial sample size based on the population size and acceptable error level.
  • Evaluation: The initial sample is evaluated for errors. If the number of errors is below a predetermined threshold, the sampling stops, and the population is considered acceptable.
  • Continuation: If the number of errors exceeds the threshold, the sample size is increased, and further samples are evaluated until a conclusion can be drawn

Advantages:

  • Efficiency: Reduces the number of items that need to be tested, saving time and resources
  • Cost-Effectiveness: Particularly useful in low-error populations, as it avoids unnecessary extensive testing.
  • Adaptability: The method adapts based on the results observed during testing, allowing for a dynamic approach

 

 

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