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Non-Stat Sampling Problem You have been assigned to determine if the stated value of inventory is...

Non-Stat Sampling Problem

You have been assigned to determine if the stated value of inventory is within tolerable limits. We show a ledger balance of $1,725,882 which contains 1,734 records. We wish to limit audit risk with a tolerable misstatement amount of 6%. We have done similar audit procedures for the last five years and have noted a small error rate and believe a nonstatistical sample will provide sufficient appropriate audit evidence.

Planning 1. Objective –

2. Determine the population

3. Determine the sampling unit

4. Define error or deviation

5. Determine sample size – 30 Lower strata items and all 18 upper strata items. Performance 1. Determine sampling method ___________________ (random, systematic, other) 2. Select sample items 3. Perform audit procedure

math   Statistics-And-Probability   
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