1. Read the file of invoices/transactions in the following formats: MS Excel, MS Access database, dBase III or later database or ASCII flat file in fixed-column format or as a delimited file.  file can be on any connected network disk.
2. Automatically determine the stratification boundaries using either the cumulative square root method or the geometric ratio method. , the user can manually enter stratum boundaries. Floor values are supported in each mode.
3. Calculate stratum diagnostics (median, mean, standard deviation, skewness, kurtosis and coefficient of variation) for each stratum.
4. Calculate the required sample size base on parameters defined by the audit support staff (desire precision, confidence level, expected error rate, type of allocation, and how to treat negative invoices).  If, after the audit, the audit support staff determines that the sample needs to be expanded, TSEPWin can expand the sample as requested by the user.
5. Allocate the sample size across the strata using either Neyman (optimal) or proportional allocation. All of the above items can be done iteratively to obtain the sample size and allocation which best meets the needs of the audit support staff.
6. Select the random sample from the sampling frame; sample is exported as an Excel spreadsheet or an ASCII flat file. Diagnostics are calculated as the sample is drawn and can be viewed at any time. The seed can be manually entered by the user or randomly generated by the computer system based upon the number of 100-nanosecond slices since 00:00:00 on January 1, 0001.
7. Prepare reports on the population statistics and sample to be taken. user can choose between sending a report directly to any connected Windows printer or saving it as a Word document.

1. Read the audit file in either Excel or as an ASCII flat file from any connected network disk.
2. Generate an error file if any assessment is greater in magnitude than its invoice amount. (This may not be an error but should be reviewed for data entry errors.)
3. Calculate the estimated tax due based on the sample actually taken. includes point and interval estimates and estimates of precision. audit support staff can choose from the traditional difference estimator, two ratio estimators and two regression estimators. five are calculated and results are presented. In addition, the empirical likelihood confidence interval is presented with the difference estimator.
4. If desired, an expanded sample can be drawn using the audit results or revised parameters.
5. Prepare reports indicating the results of the audit. user can choose between sending a report directly to any connected Windows printer or saving it as a Word document.

Two-Way Stratifications

Two-way stratifications can be achieved by combining multiple statistically independent audits into one by using the Two-Way Stratification Utility. This was a separate utility for versions 4.3 and earlier but is included in TSEPWin version 5. The TwoWay utility is available in the Downloads section.

Tutorial Videos

Tutorial videos are included in the help file for all the major features. Click here to view the video introducing TSEPWin 5.

Click to View Tutorials