There are two primary methods to classify amounts:
- Stratified using numeric ranges
- Classified according to a date value.
Data stratification is a technique used to classify amounts as to numeric ranges or "bins". This technique is often used for random sampling, as well as audit planning. The auditor has flexibility as to the strata needed, which can also be changed to easily provide the auditor a different "view" of the data.
Data stratification can be useful in identifying unusual transactions such as outliers, as well as providing an overall indication of the transaction amounts which should be tested.
To perform such a test and have the results available in electronic work paper format, the following processing information is explained below:
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| Description | Value |
|---|
| Select | Specify 'OK' to have this row processed, otherwise it will be skipped |
| Data Source | Specify the name of the Excel workbook, including directory or the name of the Access database which has the data to be analyzed |
| Command Name | stratify |
| Command Description | Stratify the population as to the variable specified |
| Table | Must enter either a sheet name followed by $ or else enter an Access table name |
| Where | An optional row selection statement may be made to narrow the analysis to just certain rows |
| Column | The name of a numeric column must be specified here |
| Column String | This command does not accept group of column names |
| Parm1 |
strata - these are a sequence of values separated by spaces, and in ascending order, which specify the "bins" or cut-off points for the classification of data. An example of a strata specification would be 0 100 200 300 400. This specification would classify transactions as being between the values specified. Note that amounts above or below the values specified will be provided automatically. |
| parm2 | This command does not accept a second parameter |
| Theme | A theme, such as summer, fall, winter, spring, pink, orange, green etc |
| Title | A chart title, if desired, may be specified here |
| Example Chart |
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