Auditing and Assurance Services, Student Value Edition (16th Edition)
16th Edition
ISBN: 9780134075754
Author: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 15, Problem 30DQP
a.
To determine
Compute the appropriate non-statistical
b.
To determine
Ascertain the initial sample sizerequired to satisfy therequirements of auditor using attributes sampling.
c.
To determine
Explain the effect on the initial sample size (increase or decrease) of changingeach of the following factors keeping other factors same.
d.
To determine
Explain the large differences occurred in the sample sizes for columns 3 or 6.
e.
To determine
Explain the differences in the results of Requirement C with the results obtained in Requirement A or Requirement B. Identify the four factors appears to havethe greatest effect and the least effect on the initial sample size.
f.
To determine
Explain the reasons for sample size and initial sample size being the similar term.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Identify the factors an auditor uses to decide the appropriateARO. Compare the sample size for an ARO of 10% with that of 5%, all other factorsbeing equal.
When using sampling in the study of internal control, the audit team would compare theupper limit rate of deviation to thea. Expected population deviation rate.b. Sample rate of deviation.c. Statistical rate of deviation.d. Tolerable rate of deviation
Suppose you're given a data set that classifies each sample unit into one of four categories: A, B, C,
the data as A = 1, B=2, C = 3, and D=4. Are the data consisting of the classifications A, B, C, and D
or quantitative?
Are the data consisting of the classifications A, B, C, and D qualitiative or quantitative?
OA. Qualitative, because they are measured on a naturally occuring numerical scale.
B. Quantitative, because they are measured on a naturally occuring numerical scale.
C. Quantitative, because they can only be classified into categories.
D. Qualitative, because they can only be classified into categories.
***
After the data are input as 1, 2, 3, or 4, are they qualitative or quantitative?
OA. Qualitative, because they cannot be meaningfully added, subtracted, multiplied, or divided.
B. Qualitative, because they are measured on a naturally occurring numerical scale.
OC. Quantitative, because they are measured on a naturally occurring numerical scale.
OD. Quantitative, because…
Chapter 15 Solutions
Auditing and Assurance Services, Student Value Edition (16th Edition)
Ch. 15 - Prob. 1RQCh. 15 - Prob. 2RQCh. 15 - Prob. 3RQCh. 15 - Prob. 4RQCh. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Prob. 8RQCh. 15 - Prob. 9RQCh. 15 - Prob. 10RQ
Ch. 15 - Prob. 11RQCh. 15 - Prob. 12RQCh. 15 - Prob. 13RQCh. 15 - Distinguish between the TER and the CUER. How is...Ch. 15 - Prob. 15RQCh. 15 - Prob. 16RQCh. 15 - Prob. 17RQCh. 15 - Prob. 18RQCh. 15 - Prob. 19RQCh. 15 - Prob. 20RQCh. 15 - Prob. 21RQCh. 15 - Prob. 22.1MCQCh. 15 - Prob. 22.2MCQCh. 15 - Prob. 22.3MCQCh. 15 - Prob. 23.1MCQCh. 15 - Prob. 23.2MCQCh. 15 - Prob. 23.3MCQCh. 15 - Prob. 24.1MCQCh. 15 - Prob. 24.2MCQCh. 15 - Prob. 24.3MCQCh. 15 - Prob. 25.1MCQCh. 15 - Prob. 25.2MCQCh. 15 - Prob. 25.3MCQCh. 15 - Prob. 27DQPCh. 15 - Lenter Supply Company is a medium-sized...Ch. 15 - Prob. 29DQPCh. 15 - Prob. 30DQPCh. 15 - Prob. 31DQPCh. 15 - Prob. 32DQPCh. 15 - Prob. 33DQPCh. 15 - Prob. 34DQPCh. 15 - Prob. 35DQPCh. 15 - Prob. 36CCh. 15 - Prob. 37ICA
Knowledge Booster
Similar questions
- Consider a sample with data values of 10, 20, 12, 17, and 16. a. Compute the mean and median. b. Consider a sample with data values 10, 20, 12, 17, 16, and 12. How would you expect the mean and median for these sample data to compare to the mean and median for part a (higher, lower, or the same)? Compute the mean and median for the sample data 10, 20, 12, 17, 16, and 12.arrow_forwardExplain the following audit sample selection 1. Random selection 2. Systematic selection 3. Monetary unit sampling 4. Haphazard selection 5. Block selection 6. Attribute samplingarrow_forwardSelect the necessary words from the list of possibilities to complete the following statements. 1. 2. 7. Inherent in the use of sampling is representative of the population. 9. When the auditors estimate sampling risk using professional judgment rather than by using the laws of probability, they are said to be using. sampling. an item from the population may be selected two or more times for inclusion in the When using sample. The term 3. 4. 5. In performing tests of controls, the auditors are primarily concerned with the risk of assessing 6. To use attributes sampling tables, the auditors must stipulate the desired risk of assessing control risk too low, the expected deviation rate in the population, and the desired Statements risk which is the possibility of selecting a sample that i not refers to the process of dividing a population into relatively homogeneous subgroups. sampling is usually used in situations in which the auditors expect a very low rate of occurrence of some…arrow_forward
- Subject: Auditing & Assurance Principles Define the following factors that affect the determination of sample size: a) Acceptable sampling risk b) Tolerable deviation rate c) Expected deviation rate d) Tolerable misstatement e) Expected misstatement f) Variation in the populationarrow_forwardWhen the auditor goes through a population and selects items for the sample without regard to their size, source, or other distinguishing characteristics, it is called Block selection\ Haphazard selection Random selection Systematic selectionarrow_forwardSubject: Auditing & Assurance Principles PAS 530 defines methods of selecting samples. Describe briefly each method:a) Random number selectionb) Systematic selectionc) Haphazard selectiond) Sequential samplinge) Discovery samplingf) Stratified samplingg) Value-weighted selectionarrow_forward
- Please answer asaparrow_forwardUsing AICPA sample evaluation tables, determine the conclusion from a statistical sampleof internal controls when a sample of 125 documents indicates five deviations if the tolerablerate of deviation is 5 percent, the expected population deviation rate is 2 percent, and theallowance for sampling risk is 3 percent.a. Accept the evidence as support for assessing a low control risk because the tolerable rateof deviation less the allowance for sampling risk is less than the expected populationdeviation rate.b. Use the evidence to assess a higher control risk than planned because the sample rate ofdeviation plus the allowance for sampling risk exceeds the tolerable rate of deviation.c. Use the evidence to assess a higher control risk than planned because the tolerable rate ofdeviation plus the allowance for sampling risk exceeds the expected population deviationrate.d. Accept the evidence as support for assessing a low control risk because the sample rate ofdeviation plus the allowance for…arrow_forwardThe risk that the decision made based on the sample will differ from the decision madebased on the entire population is referred to asa. Audit risk.b. Examination risk.c. Sampling risk.d. Nonsampling riskarrow_forward
- State the relationship between the following:a. ARO and sample sizeb. Population size and sample sizec. TER and sample sized. EPER and sample sizearrow_forwardWhat is the relationship between sample size and (a) sampling risk, (b) tolerable rate of deviation,and (c) expected population deviation ratearrow_forwardQUESTION 4 B. Using audit sampling, a subset of the population is selected for testing to derive generalisations about the population. Required: Determine FIVE (5) elements to be assessed during the sample selection.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning
Essentials of Business Analytics (MindTap Course ...StatisticsISBN:9781305627734Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. AndersonPublisher:Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:South-Western College Pub
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
Essentials of Business Analytics (MindTap Course ...
Statistics
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub