## The Application of Techniques of Sequential Analysis to Audit Procedures |

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40 20 I I I I I I I I I I I I I 42 44 DEFECTIVES 44 DEFECTIVES Fig 500 Transfers Accept if score Acceptable Quality Level accounting procedures actual application average expected number Binomial Binomial Distribution Biometrics Biometrika considerations decision defectives found empirical probabilities equation example field audits functions given work load hypothesis internal test check Intra-area transfers item scores judgement maximum risk multiple risk pattern Normal distribution null hypothesis number of defectives number of samples NUMBER SAMPLED 200 oom-oom P1 and P2 P2 values Poisson distribution probability of accepting problems proportion of defective reject if score risk functions schedule of risks sequential analysis sequential curves Sequential Estimation Sequential Sampling Sequential Tests set of books SF Accountability SF materials sixth sense Stat Statistical survey supervisor Theory of Sequential trial balance unacceptable volume of material Wald