statement bounds expressed in monetary use the statistical inference process QUESTIONS 17-1 (OBJECTIVE 17-1) What major difference between (a) tests of controls and substantive tests of transactions and (b) tests of details of balances makes attributes sampling inappro priate for tests of details of balances? 17-2 (OBJECTIVE 17-2) Define stratified sampling and explain its importance in auditing How can an auditor obtain a stratified sample of 30 items from each of three strata in the confirmation of accounts receivable? 17-3 (OBJECTIVE 17-2) What is the relationship between ARIA for tests of details of balances and ARO for tests of controls? 17-4 (oBJECTIVE 17-2) Distinguish between the point estimate of the total misstatements and the true value of the misstatements in the population. How can each be determined? 17-5 (OBJECTIVE 17-2) Evaluate the following statement made by an auditor: "On every aspect of the audit where it is possible, I calculate the point estimate of the misstatements and evaluate whether the amount is material. If it is, I investigate the cause and continue to test the population until I determine whether there is a serious problem. The use of statis- tical sampling in this manner is a valuable audit tool ATION OF THE AUDIT PROCESS TO THE SALES AND COLLECTION CYCL