An auditor is performing substantive tests of pricing and extensions of perpetual inventory balances consisting of a

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An auditor is performing substantive tests of pricing and extensions of perpetual inventory balances consisting of a large number of items. Past experience indicates numerous pricing and extension errors. Which of the following statistical sampling approaches is most appropriate?

a. Unstratified mean estimation.

b. Ratio estimation.

c. PPS.

d. Stop or go.

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Auditing An Assertions Approach

ISBN: 9780471134213

7th Edition

Authors: G. William Glezen, Donald H. Taylor

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