Scientific Method for AuditingUdgave 1

Scientific Method for Auditing: Applications of Statistical Sampling Theory to Auditing Procedure by Lawrence L. Vance offers one of the earliest systematic efforts to bridge the professions of statistics and auditing. Written in 1949, the book argues that auditors—who almost universally base conclusions on sampling—have lacked rigorous statistical tools to interpret their findings. Vance addresses this gap by adapting concepts developed in quality control and scientific research to the practical realities of accounting examinations. The text introduces auditors to probability theory, the binomial distribution, and sequential sampling, explaining how these statistical devices can transform subjective professional judgment into more objective, replicable standards. Through accessible examples, such as interpreting errors in inventory counts or sales invoices, Vance demonstrates how auditors can assess the likelihood that a given sample represents the true condition of an entire population of accounts. Beyond the fundamentals of probability inference, the book examines the specific constraints auditing imposes on statistical reasoning. Vance details methods for determining sample sizes, detecting bias in accounting errors, and using likelihood ratios to weigh competing hypotheses about the accuracy of records. Applications extend to fraud detection and to the auditing of inventories, accounts receivable, and capital expenditures. Importantly, he emphasizes how statistical techniques not only improve reliability but also allow for better planning of audit costs and the establishment of objective auditing standards. With appendices offering formulas, sequential sampling tables, and a history of auditing standards in the United States, the volume positions itself as both a practical manual and a conceptual framework. By aligning auditing practice with advances in statistical science, Vance's work provided the accounting profession with a path toward greater methodological rigor and set the stage for subsequent generations of statistically informed auditing. This title is part of UC Press's Voices Revived program, which commemorates University of California Press's mission to seek out and cultivate the brightest minds and give them voice, reach, and impact. Drawing on a backlist dating to 1893, Voices Revived makes high-quality, peer-reviewed scholarship accessible once again using print-on-demand technology. This title was originally published in 1950.

Many titles in the Voices Revived program are also newly available as ebooks, offered at a discounted price to support wider access to scholarly work.