Exhibit 12-4

Abernethy and Chapman
SAMPLING FOR VARIABLES – DIFFERENCE ESTIMATION
Client:
Form Completed By:
Audit Area:
Date of Testing:

Year Ending:

(1) State the objectives of the audit testing:

(2) Define the population:

(3) Define the sampling unit:

(4) Specify the acceptable level of risk for incorrect acceptance and identify the confidence
coefficient (Z value) for this percentage:

(5) Specify the acceptable level of risk for incorrect rejection and identify the confidence
coefficient (Z value) for this percentage:

(6) Specify a tolerable error for this population:

(7) Specify a point estimate of the population error:

(8) Compute appropriate sample size:

(9) Indicate the method used to draw random sample:

Show the formula being used and identify each element within this formula (all computations should be attached): Identify the upper and lower confidence limits of the population. based on precision interval and the average difference of the sample: Indicate whether the upper and lower confidence imits lie entirely within the tolerable error parameters: Recommendations: . using the entire sample selected: Calculate the average difference between within the sample and extend this figure to entire population: Determine the precision interval.Recompute the standard deviation.