SSAC estimation of accountancy performance

This paper presents new results in the sampling theory of the D statistic. These results show that inspector verification data can be used to estimate the mean square error of the total accountancy discrepancy in the operator's material balance. The results are of primary interest to state systems of accounting and control (SSAC) and to the management of facilities who collaborate with the SSAC in the implementation of verification activities designed to quantify accountancy performance. The mean square error is estimated by a simple formula involving D and the estimator of the variance of D. The result is a general result valid for different sampling approaches (random, stratified, cluster, utility weighted) and different verification measurement schemes. The results make no assumptions about the type of probability distribution generating the accountancy discrepancies. (author)