What question did this study set out to answer?

This research aims to develop a method for selecting optimal audit sampling plans while accounting for risk and cost.

A Continuous Constrained Optimization Model for Audit Sampling.

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Randomized trial assesses optimal audit sampling strategies for compliance testing, highlighting significant cost and risk evaluations.

This research aims to develop a method for selecting optimal audit sampling plans while accounting for risk and cost.
Developed a constrained optimization model incorporating β risk as a constraint.
Examined implications of various acceptable error rates on sampling plans.
Investigated the sensitivity of sampling plan results to input misspecifications.
The proposed model effectively minimizes total costs of type 1 errors and sampling.
Demonstrated that traditional methods are sensitive to incorrect specifications of acceptable error rates.
Showed improved reliability in sampling plan decisions under varying cost and risk conditions.

Finley et al. (1987) studied this question.

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