Use of the ratio estimation sampling technique to estimate dollar amounts is inappropriate when
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Journal Information The Journal of Accounting Research publishes original research using analytical, empirical, experimental, and field study methods in accounting research. The journal had been published since 1963 by the Accounting Research Center (ARC) at the University of Chicago Booth School of Business. Beginning in 2001, the Journal of Accounting Research has been published by the ARC in partnership with Blackwell Publishing. JSTOR provides a digital archive of the print version of Journal of Accounting Research. The electronic version of Journal of Accounting Research is available at http://www.interscience.wiley.com. Authorized users may be able to access the full text articles at this site. Show
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Wiley has partnerships with many of the world’s leading societies and publishes over 1,500 peer-reviewed journals and 1,500+ new books annually in print and online, as well as databases, major reference works and laboratory protocols in STMS subjects. With a growing open access offering, Wiley is committed to the widest possible dissemination of and access to the content we publish and supports all sustainable models of access. Our online platform, Wiley Online Library (wileyonlinelibrary.com) is one of the world’s most extensive multidisciplinary collections of online resources, covering life, health, social and physical sciences, and humanities. Use of the ratio estimation sampling technique to estimate dollar amounts is inappropriate when B. There are some observed differences between audited values and book values. C. The total book value is known and corresponds to the sum of all the individual book values. D. The audited values are nearly proportional to the book values. Test Prep This preview shows page 56 - 59 out of 62 pages. 79.Use of the ratio estimation sampling technique toestimate dollar amounts is inappropriate when: We have textbook solutions for you!The document you are viewing contains questions related to this textbook. Financial and Managerial Accounting Using Excel for Success Reeve/Warren Expert Verified A.The total bocorrespondbook valueB.A book value for each sample item is unknown.C.There are some observed differences between auditedD.The audited values are nearly proportional to the book vAACSB: AnalyticAACSB: TechnologyAICPA BB: IndustryAICPA BB: Leveraging TechnologyAICPA FN: Leveraging TechnologyAICPA FN: MeasurementBlooms: UnderstandDifficulty: 2 MediumLearning Objective: 09-07 Describe the difference and ratio methods of estimation.Source: AICPATopic: Classical Variables SamplingWhittington - Chapter 09 #7980.Auditors have a variety of sampling approachesavailable. For each approach in the first column,identify the correct statement in the secondcolumn. Each statement may be used once, morethan once, or not at all.1. Attributes samplingThe most frequentlyused general methodthat arrives at anestimated deviationrate.12. DifferenceestimationsamplingA classical method that usesaudited and book values of items in thto obtain an estimated total audite3. Ratio estimationsamplingA method that is most ecircumstances in which auditors expelow rate of occurrence of somdeviation (e.g., a fraudu4. Mean-per-unitestimationsamplingA method that defines the samplineach individu5. DiscoverysamplingA classical method that usesaudited values of items in the samplbook values) to obtain an estim6. Probability-proportional-to-sizesamplingA classical method that usesaudited and book values of items in thto obtain an estimated total auditeAACSB: AnalyticAACSB: TechnologyAICPA BB: IndustryAICPA BB: Leveraging TechnologyAICPA FN: Decision Making AICPA FN: Leveraging TechnologyBlooms: UnderstandDifficulty: 2 MediumLearning Objective: 09-03 Understand the different types of sampling plans used in auditing.Topic: Statistical and Nonstatistical SamplingWhittington - Chapter 09 #8081.Audit sampling is used in conjunction with many audit tests, and may be performed on astatistical or nonstatistical basis.a. Define the term audit sampling.b. List and explain two advantages of the use of statistical sampling as compared tononstatistical sampling.a. Audit sampling is performing a test on less than 100 percent of an audit population to makea conclusion about a characteristic of the population.b. Statistical sampling may assist the auditors in (only two required):• Designing efficient samples.• Measuring the sufficiency of the evidence obtained.• Objectively evaluating sample results (measuring sampling risk).AACSB: AnalyticAACSB: TechnologyAICPA BB: IndustryAICPA BB: Leveraging TechnologyAICPA FN: Decision MakingAICPA FN: Leveraging TechnologyBlooms: UnderstandDifficulty: 2 MediumLearning Objective: 09-01 Distinguish between statistical and nonstatistical sampling. Upload your study docs or become a Course Hero member to access this document Upload your study docs or become a Course Hero member to access this document End of preview. Want to read all 62 pages? Upload your study docs or become a Course Hero member to access this document We have textbook solutions for you!The document you are viewing contains questions related to this textbook. The document you are viewing contains questions related to this textbook. Financial and Managerial Accounting Using Excel for Success Reeve/Warren Expert Verified Which of the following is not generally used for selecting samples?Which of the following is not generally used for selecting samples? Physical representation numbers.
What effect does obtaining a sample with a standard deviation larger than that estimated during planning have on the adjusted allowance for sampling risk?What effect does obtaining a sample with a standard deviation larger than that estimated during planning have on the adjusted allowance for sampling risk? Decreases. The 2000 accounts receivable of ABC Company have a total book value of $40,000.
Which statistical sampling technique involve taking samples in a series of stages?-Should compare the deviation rate of the sample to the tolerable rate. -Should compare the deviation rate of the sample to the tolerable rate. Which of the following statistical sampling techniques involves taking samples in a series of stages? -Systematic sampling.
Which of the following statistical selection techniques is least desirable for use by an auditor?The least desirable sampling technique for auditors is block selection.
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