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
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Question
Chapter 15, Problem 32DQP
a and b
To determine
Identify whetherattribute samplingis used by the auditor in selection of
c.
To determine
Identify the type of sample size that is considered unacceptable for the six populations and also state the alternate options that are available to the auditor.
d.
To determine
Explain the reason for considering analysis of exception necessary when population is considered acceptable.
e.
To determine
Identify the category the following items will be classified.
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Sample Size Determination. Review each of the following independent sets of conditions.Required:Use AICPA sample size tables to identify the appropriate sample size for use in a statistical sampling application (ROO = risk of overreliance, EPDR = expected population deviation rate, TRD = tolerable rate of deviation). What is your conclusion regarding the relationship of each of these factors to sample size based on comparing the sample sizes across differentcombinations of these factors?a. ROO = 5%, EPDR = 0%, TRD = 7%.b. ROO = 5%, EPDR = 3%, TRD = 7%.c. ROO = 5%, EPDR = 3%, TRD = 6%.d. ROO = 10%, EPDR = 0%, TRD = 7%.
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…
Sample Size Determination. Review each of the following independent sets of conditions.Required:Use AICPA sample size tables to identify the appropriate sample size for use in a statisticalsampling application (ROO = risk of overreliance, EPDR = expected population deviationrate, TRD = tolerable rate of deviation). What is your conclusion regarding the relationshipof each of these factors to sample size based on comparing the sample sizes across differentcombinations of these factors?a. ROO = 5%, EPDR = 1%, TRD = 4%.b. ROO = 5%, EPDR = 1.5%, TRD = 4%.c. ROO = 5%, EPDR = 1.5%, TRD = 6%.d. ROO = 10%, EPDR = 1.5%, TRD = 4%
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
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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_forwardConsider a sample with data values of 53, 55, 70, 58, 64, 57, 53, 69, 57, 68, and 53. Compute the mean, median, and mode.arrow_forwardSample Results Evaluation.Required:Review each of the following independent sets of conditions. For each condition, calculatethe (1) sample rate of deviation, (2) ULRD, and (3) allowance for sampling risk (n = samplesize, d = deviations, ROO = risk of overreliance). What is your conclusion regarding therelationship of each of these factors to the ULRD based on comparing the ULRD across different combinations of these factors?a. n = 100, d = 8, ROO = 5%.b. n = 100, d = 4, ROO = 5%.c. n = 100, d = 8, ROO = 10%arrow_forward
- ample Size Determination. Review each of the following independent sets of conditions.Required:Use AICPA sample size tables to identify the appropriate sample size for use in a statisticalsampling application (ROO = risk of overreliance, EPDR = expected population deviationrate, TRD = tolerable rate of deviation). What is your conclusion regarding the relationshipof each of these factors to sample size based on comparing the sample sizes across differentcombinations of these factors?a. ROO = 5%, EPDR = 0%, TRD = 7%.b. ROO = 5%, EPDR = 3%, TRD = 7%.c. ROO = 5%, EPDR = 3%, TRD = 6%.d. ROO = 10%, EPDR = 0%, TRD = 7%.arrow_forwardReview each of the following independent sets of conditions. For each condition, calculatethe (1) sample rate of deviation, (2) ULRD, and (3) allowance for sampling risk (n = samplesize, d = deviations, ROO = risk of overreliance). What is your conclusion regarding therelationship of each of these factors to the ULRD based on comparing the ULRD across different combinations of these factors?a. n = 100, d = 8, ROO = 5%.b. n = 100, d = 4, ROO = 5%.c. n = 100, d = 8, ROO = 10%arrow_forwardIdentify 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.arrow_forward
- When 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_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_forwardThe following are auditor judgments and attributes sampling results for six populations. Assume large population sizes.  1 2 3 4 5 6 EPER (in percent) 2 0.5 1 0 2 5 TER (in percent) 6 4 20 3 8 10 ARO (in percent) 10 5 10 5 5 10 Actual sample size 100 100 20 100 60 60 Actual number of exceptions in the sample 2 3 1 1 1 5   For each population, did the auditor select a smaller sample size than is indicated by using the attributes sampling tables in Table 15-8(p. 519) for determining sample size? What are the implications of selecting either a larger or smaller sample size than those determined using the tables? Calculate the SER and CUER for each population. For which of the six populations should the sample results be considered unacceptable? What options are available to the auditor? Why is analysis of the exceptions necessary even when the populations are considered acceptable? For…arrow_forward
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