The program first asks you to choose one of the following options:

1. Judgmental assessment of universe error rate, or

2. Sample results from a similar audit universe.

I am selecting #1 because I don't have a similar audit universe.

After this, the program asks for a "Presumed Universe Error Rate."

The program explains this assessment is judgmentally derived from the percentage of the universe amount that is in error. It says the maximum is 50 percent.

I don't understand how I should come up with this number and need help.

Here is some background on what I'm trying to do.

I want to select a statistical sample from a list of transactions.

Once the sample of transactions is selected, each transaction in the sample will be examined for a certain type of error. I can go into more detail about what is being examined and what constitutes an error if need be but for now, I will just say, the transaction is either correct or in error.

The errors will then be projected onto the universe.

I initially looked at 4 transactions and found 2 of the 4 to be in error. Based on this, I am inclined to go with the 50% maximum error rate but I really don't know.

Any help would be most appreciated.