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Dollar Unit Sampling

From: Gregg Tompkins <greggt67@aol.com>
Date: 20 Mar 2000
Time: 03:03:32

Comments

I have very little knowledge of the implementation of audit sampling but in my work I run across the use of audit sampling occasionally.

Car manufacturers often visit dealerships to review paperwork and one particular manufacturer uses Dollar Unit Sampling. The manufacturer reviews a sampling of the dealerships paperwork to determine non-compliance and then using Dollar Unit Sampling to determine the amount of the chargeback.

My question is - I see sampling used to verify defect rates, compliance rates, etc. Is it acceptable to use sampling to chargeback money to businesses based on the use of sampling as opposed to charging back money only on documentation reviewed?

I'm also interested in finding out if there is any defense to use against sampling. Are all the factors in the equation based on assumptions that are determined by the auditor?

Thanks


Last changed: November 20, 2007