Healthcare auditors face unique issues. The audit populations and samples that they routinely deal with are not those discussed in survey sampling textbooks. In particular, their audit populations and samples generally contain a large number of zero values since audit populations tend to be mostly correct (and a zero “error” is recorded). The presence of a large number of zero errors is a very important feature of audit sampling and has many important consequences that affect the appropriateness of using many of the statistical techniques employed in survey sampling. This represents a unique feature that distinguishes audit sampling from most other types of surveys. Because most books on sampling theory do not treat this, Handbook for Healthcare Auditors: Methods and Issues Related to Statistical Sampling will cover this aspect of audit sampling in some detail and offer ways of coping in practice. This handbook provides an in-depth discussion of the various sampling designs available to healthcare (and other) auditors. The authors’ set of Excel macros is available to purchasers and is discussed throughout, including random number generation and sample projections using standard but also very-recently-developed methodology. Particular attention is paid to stratified designs (selecting the number of strata, determining strata boundaries, appraising the results) and multistage designs (single-stage, two-stage, three-stage).
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Dr. Al Kvanli recently retired after 41 years of teaching at the university level. He was the lead author of several college-level textbooks, including Business Statistics: Analytics for Decision Making. He authored many articles related to issues discussed in this handbook pertaining to the unique nature of the samples and populations encountered in healthcare auditing. He continues to be a leading consultant in the defense of government audits and has written and conducted numerous sampling courses for auditors within the Federal Department of Health & Human Services, Office of Inspector General (OIG). He also consults for the OIG branches of the Department of Labor and the Treasury Department. He has provided expert testimony for Medicaid audit appeals in Mississippi, North Carolina, California, Idaho, Texas, and New Mexico. Mr. Schauer joined the Multistate Tax Commission in 2006. Prior to joining the MTC, Mr. Schauer was employed for twenty-four years with the Washington State Department of Revenue (WADOR). During his time with WADOR, he served as an auditor and then later as a computer audit specialist. He has a keen interest in statistical sampling and was a key individual in the development of the WADOR sampling program--assisting in the development of training, software, and policy as it concerned audit sampling. Mr. Schauer has a degree in accounting from the University of Portland, and recently coauthored (with Dr. Al Kvanli) two articles on statistical sampling, published in the Journal of Government Financial Management. Excel Macros Link: https://drive.google.com/file/d/1uZbqm8DbSo430U6qiKhHIRW_31H9pmqo/view?usp=sharing
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