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Binomial distribution for audit risk assessment - rough outline

 §1. Each assertion as coin toss, if error then success else failure hence binomial model is suitable (also discrete random variables)

§2. To keep the level of risk when using sampling within acceptable level by using binomial distribution 

§3. To build analytical model under Analytical Procedures for estimate etc. 

Note: can be completely wrong, just in initial phase of model building 

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