Arthur Castle is interested in identifying the average number of family members living in each household in

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Arthur Castle is interested in identifying the average number of family members living in each household in his neighborhood. He has heard about sampling and thinks that it could help him identify this information. In considering the application of sampling to this particular situation, he considers the following characteristics of his neighborhood:
a. Many of his neighbors are dual- income career couples and are away from home in the mornings and afternoons.
b. His neighborhood has two distinct types of homes. The value of the homes in the more established section is in the $ 300,000 and above price range; most of the individuals have resided in this section for quite some time. The value of homes in the newer section is in the $ 150,000–$ 200,000 range, most of which have been built and occupied within the last two years.
c. A small park has been built in the neighborhood. Because of safety considerations, many families with small children have chosen to live near the park.
d. A wooded area backs up to one section of his neighborhood. Because of the privacy offered by the wooded area, as well as the relative lack of traffic, older residents have chosen to live in this part of the neighborhood.
e. Several families have frequent visitors to their homes, particularly on the weekends.

Required:
For each of these characteristics, indicate whether it has the potential to affect sampling risk, non-sampling risk, both sampling risk and non-sampling risk, or neither sampling risk nor non-sampling risk.

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Auditing and Assurance Services

ISBN: 978-0077862343

6th edition

Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws

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