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Answer / durai
A technique used to analyze/divide a universe of data into
homogeneous groups (strata) often data collected about a
problem or event represents multiple sources that need to
It involves looking at process data, splitting it into
distinct layers (almost like rock is stratified) and doing
analysis to possibly see a different process.
For instance, you may process loans at your company. Once
you stratify by loan size (e.g. less than 10 million,
greater than 10 million), you may see that the central
tendency metrics are completely different which would
indicate that you have two entirely different
processes...maybe only one of the processes is broken.
Stratification is related to, but different from,
A stratifying factor, also referred to as stratification or
a stratifier, is a factor that can be used to separate data
into subgroups. This is done to investigate whether that
factor is a significant special cause factor.
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Data stratification helps the auditor/researcher classify data, in order to perform tasks
• Sample planning
• Audit Planning
• Identification of potential exceptions
• Determining if “outliers” may exist
• Obtaining a better understanding of the population
• Comparison of two components of one population
The procedures described here are an efficient and effective way to stratify the numeric
data in the population being tested.
The data stratification procedure classifies numeric amounts into “buckets” or value
ranges specified by the auditor. The purpose is to classify numeric amounts in order to
determine the most frequently occurring values, largest and smallest values, etc.
Stratification is often used for sample planning (stratified sampling, reasonableness tests)
as well as audit planning in general.
Usage Example 1:----
In a test of accounts payable, classify the invoice amounts into particular ranges for the
purpose of audit planning. Invoices less than $100 do not require a secondary
authorization. Invoices over $50,000 requires three authorizations. All invoices over
$2,500 require a purchase order.
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Answer / kartik
separation of usable data from a whole lot of data.
|Is This Answer Correct ?||3 Yes||2 No|
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