Auditing & Assurance Services (Auditing and Assurance Services)
Auditing & Assurance Services (Auditing and Assurance Services)
7th Edition
ISBN: 9781259573286
Author: Timothy J Louwers, Allen Blay, David Sinason Associate Professor, Jerry R Strawser, Jay C. Thibodeau Associate Professor
Publisher: McGraw-Hill Education
Question
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Chapter E, Problem 70EP

a.

To determine

Identify the factors that will influence the decision made by Mr. F in using sampling method.

b.

To determine

Describe the merits and demerits of using sampling method in this circumstance.

c.

To determine

Describe a sampling risk and explain the two different results that better reflect the exposure of Mr. F to sampling risk and give reasons for the results out of the two that will concern Mr. F the most.

d.

To determine

Give reasons that would influence the decision of Mr. F with respect to the potential sampling risk from the two outcomes if the initial investment is $10,000 instead of $150,000.

e.

To determine

Describe a non-sampling risk and explain the potential non-sampling risks that Mr. F may face in his sampling process.

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