Questions from Auditing and Assurance

Q: Assume that a sample of 100 units was obtained in sampling the

Assume that a sample of 100 units was obtained in sampling the inventory in Question 17-4. An auditor is determining the appropriate sample size for testing inventory valuation using MUS. The populati...

Q: Why is it difficult to determine the appropriate sample size for MUS

Why is it difficult to determine the appropriate sample size for MUS? How should the auditor determine the proper sample size?

Q: What is meant by a decision rule using difference estimation? State

What is meant by a decision rule using difference estimation? State the decision rule.

Q: What alternative courses of action are appropriate when a population is rejected

What alternative courses of action are appropriate when a population is rejected using nonstatistical sampling for tests of details of balances? When should each option be followed?

Q: Define what is meant by the population standard deviation and explain its

Define what is meant by the population standard deviation and explain its importance in variables sampling. What is the relationship between the population standard deviation and the required sample s...

Q: In using difference estimation, an auditor took a random sample of

In using difference estimation, an auditor took a random sample of 100 inventory items from a large population to test for proper pricing. Several of the inventory items were misstated, but the combin...

Q: Identify the factors an auditor uses to decide the appropriate ARACR.

Identify the factors an auditor uses to decide the appropriate ARACR. Compare the sample size for an ARACR of 10% with that of 5%, all other factors being equal.

Q: Distinguish among difference estimation, ratio estimation, mean-per-

Distinguish among difference estimation, ratio estimation, mean-per-unit estimation, and stratified mean-per-unit estimation. Give one example in which each can be used. When is MUS preferable to any...

Q: An essential step in difference estimation is the comparison of each computed

An essential step in difference estimation is the comparison of each computed confidence limit with tolerable misstatement. Why this step so important, and what should the auditor do if one of the con...

Q: Explain why difference estimation is commonly used by auditors.

Explain why difference estimation is commonly used by auditors.