This problem requires the use of ACL software, which is includedin the CD attached to the text. Information about installing and using ACL and solvingthis problem can be found in Appendix, pages 830–834. You should read all of thereference material, especially the material on sampling, to answer questions a. through e.For this problem use the “Inventory” file in the “Inventory_Review” subfolder undertables in Sample_Project. Suggested commands, where applicable, are indicated at the endof the problem requirements.a. Calculate the sample size and sampling interval for an MUS sample based on inventory value at cost (Value). Use a confidence level of 90%, materiality of $40,000,and expected errors of $2,500. (Sampling/Calculate Sample Size; select “monetary”radio button)b. What is the sampling size and sampling interval if you increase materiality to$50,000 and decrease expected errors to $1,000?c. Select the sample based on the sampling interval determined in part a. (Sampling /Sample Records; select “Sample type” as MUS. For “Sample Parameters” select fixedinterval and enter the interval from part a.; use a random start of 3179.)d. How many items were selected for testing? Why is this number less than the samplesize determined in part a.?e. What is the largest item selected for testing? How many sample items are larger thanthe sampling interval? How many items are larger than the sampling interval in thepopulation?
This problem requires the use of ACL software, which is included
in the CD attached to the text. Information about installing and using ACL and solving
this problem can be found in Appendix, pages 830–834. You should read all of the
reference material, especially the material on sampling, to answer questions a. through e.
For this problem use the “Inventory” file in the “Inventory_Review” subfolder under
tables in Sample_Project. Suggested commands, where applicable, are indicated at the end
of the problem requirements.
a. Calculate the
and expected errors of $2,500. (Sampling/Calculate Sample Size; select “monetary”
radio button)
b. What is the sampling size and sampling interval if you increase materiality to
$50,000 and decrease expected errors to $1,000?
c. Select the sample based on the sampling interval determined in part a. (Sampling /
Sample Records; select “Sample type” as MUS. For “Sample Parameters” select fixed
interval and enter the interval from part a.; use a random start of 3179.)
d. How many items were selected for testing? Why is this number less than the sample
size determined in part a.?
e. What is the largest item selected for testing? How many sample items are larger than
the sampling interval? How many items are larger than the sampling interval in the
population?
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