If you were to perform hypothesis tests in the situations described in 11-19 c and d, what
Question:
If you were to perform hypothesis tests in the situations described in 11-19 c and d, what Beta risks would you use ?
11-19 c and d:
Following are four situations in which you will use statistical sampling. Indicate what precision and reliability values you will use for each and justify your answer. Be sure to indicate whether reliability is one-sided or two-sided, and why.
c. You are designing year-end detailed procedures for the positive confirmation of accounts receivable where internal control looks good and tests of transactions indicate a low likelihood of errors in the financial statements. Analytical procedures are also strong.
Precision___________________________________
Reliability____________________________________
d. You are designing year-end detailed procedures for the positive confirmation of accounts receivable. You found no errors in tests of transactions, but the analytical tests indicated potential problems.
Precision_________________________________
Reliability_________________________________
Step by Step Answer:
Applications Of Statistical Sampling To Auditing
ISBN: 9780130391568
1st Edition
Authors: Alvin A. Arens, James K. Loebbecke