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technical adjustment factor

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Terminological databases

EKI terminibaas Esterm

ID 718634 Last modified 30.12.2004
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Domain public financesStatistics
technical adjustment factor
Usage examples
  • At the end of testing the percentage errors for overstatements are added together and multiplied by the sampling interval. The total found is called the Most Likely Error (MLE). The MLE is then multiplied by an technical adjustment factor (not explained here). This adjustment factor can be calculated exactly using audit software. Otherwise it can be assumed to be 1.7 at a confidence level of 95% or 1.45 at a confidence level of 85%.

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