19. When using variables mean per unit estimation sampling for each of the follo

Question

19. When using variables mean per unit estimation sampling for each of the following conditions does sample size increase or decrease?

E.  If you increase the allowance for sampling risk, the sample size ______________

F.  If you increase the standard deviation (variability) of the population size, the sample size __________________

When using attribute sampling for each of the following conditions does sample size increase or decrease?

G.  If you increase the tolerable deviation rate, the sample size __________

H.  If you increase the expected population deviation (error) rate the sample size ________

I. If you increase the risk of assessing control risk too low, the sample size _________

J.  Population size ______________

20.

a. List and explain the advantages of using statistical sampling.

b. How does the CPA use and apply professional judgment when using statistical sampling for the test of controls.

c. When testing controls the CPA determines that the deviation rate exceeds the tolerable rate.  What course of action would the CPA normally take?

Explanation / Answer

ans 19 E Decreases As both are inversely related F Increases If there is increase in standard deviation the sample size also increases G Decreases as tolerance deviation and sample size is inversely related H Increases if expected population deviation increase sample size also increase and vice versa I Increases J Increases

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.