Auditors have used samples to conduct audit tests for decades. Despite the frequent use of sampling, auditors often use nonstatistical sampling rather than statistical sampling. Visit the website for The CPA Journal (www.cpajournal.com) and use the search function to locate the article "Statistical Sampling Revisited" by Neal B. Hitzig, May 2004. Based on your reading of the article, answer the following questions. a. What is the primary difference between nonstatistical sampling and statistical sampling? b. What reasons are often given to support the decision to use nonstatistical sampling versus statistical sampling? c. What is the main advantage of statistical sampling? d. Describe what is meant by "probability sampling." e. What is the "upper confidence limit" as referred to in the article?
Refer to the Baseball 2018 data. Compute the mean number of home runs per game. To do this, first find the mean number of home runs per team for 2018. Next, divide this value by 162 (a season comprises 162 games). Then multiply by 2 because there are two teams in each game. Use the Poisson...
There are now 256 million registered passenger cars, and in 1990 there were 193 million. Relative Change. Exercises each provide two values. For each pair of values, use a percentage to express their relative change or difference. Use the second given value as the reference value, and express...
The company introduced an environmentally conscious package design for the plant bottle that had 100% recycled paper with a peel-off, plantable seeded paper leaf. https://www.youtube.com/watch?v=3gEOP8Th478 1. 1. Evaluate the creative strategy used to position DASANI in the bottled water industry...
On January 1, 2016, the following information was drawn from the accounting records of Carter Company: cash of $800; land of $3,500; notes payable of $600; and common stock of $1,000. Required a. Determine the amount of retained earnings as of January 1, 2016. b. After looking at the amount of...
In Part V of the Pinnacle Manufacturing case, you prepared a performance format audit program. In Part VI, sample sizes will be determined by using nonstatistical or attributes sampling, and the results of the tests will be evaluated. You should use nonstatistical sampling unless your professor...
Distinguish among tests of details of balances, tests of controls, and substantive tests of transactions for the sales and collection cycle. Explain how the tests of controls and substantive tests of transactions affect the tests of details of balances.
Montgomery Ward operates a retail department store chain. It filed for bankruptcy during the first quarter of Year 12. Exhibit 3.22 presents a statement of cash flows for Montgomery Ward for Year 7 to Year 11. The firm acquired Lechmere, a discount retailer of sporting goods and electronic...