Unrestricted Random Sampling Without Replacement
Not what you're looking for?
9-38.
The 10 following statements apply to unrestricted random sampling without replacement. Indicate whether each statement is true or false. Briefly discuss each false statement.
a. When sampling from the population of accounts receivable for certain objectives, the auditor might sample only active accounts with balances
b. To be random, every item in the population must have an equal chance of being selected for inclusion in the sample.
c. In general, all items in excess of a material misstatement need to be examined and sampling of them is inappropriate.
d. It is likely that five different random samples from the same population could produce five different estimates of the true population mean.
e. A 100 percent sample would have to be taken to eliminate sampling risk.
f. The effect of the inclusion by chance of a very large or very small item in a random sample can be lessened by increasing the size of the sample.
g. The standard deviation is a measure of the variability of items in a population.
h. The larger the standard deviation of a population, the smaller the required sample size.
i. Unrestricted random sampling with replacement may result in a larger sample size than unrestricted random sampling without replacement.
j. Unrestricted random sampling normally results in a smaller sample size than does stratified sampling.
Purchase this Solution
Solution Summary
The solution discusses unrestricted random sampling without replacement.
Solution Preview
Below you will find assistance on the auditing questions as posted.
9-38.
The 10 following statements apply to unrestricted random sampling without replacement. Indicate whether each statement is true or false. Briefly discuss each false statement.
a. When sampling from the population of accounts receivable for certain objectives, the auditor might sample only active accounts with balances
TRUE - This depends on the objectives however. If they are testing for reasonableness and validity of $0 balances, they could sample for inactive accounts without balances to ...
Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Motivation
This tests some key elements of major motivation theories.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.