Discussion of Structuring the Assessment of Audit Evidence--An Expert Systems Approach.

The article presents information on a discussion of structuring the assessment of audit evidence--an expert systems approach. The probability of a material error in the combined population can be calculated using the combined Poisson distribution and used to calculate the necessary sample n to achieve the target risk level of a material error. Essentially, the theorem is just a formalization of the intuitive notion that by verifying one-half of all the journal entries in an accounting system, the auditor has verified the entire system.