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.

a. You are performing a detailed compliance test in a situation where you believe the system of internal control is veiy good and is being complied with; you intend to rely on the system extensively. The related account balance is the largest in the financial statements.

Precision_____________________________________________________ Reliability____________________________________________________

b. You are designing year-end detailed procedures for the positive confirmation of accounts receivable. You have found numerous errors in testing internal controls, and analytical procedures are not particularly effective. Thus, these detailed procedures will play a critical role.
Precision________________________________ 

Reliability________________________________

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_________________________________