Indicate How Each of the Following Considerations Would Impact Sample

question 55

Short Answer

Indicate how each of the following considerations would impact sample size in a classical variables sampling application by using I (increase),D (decrease),or N (no effect).
1____.The inventory account balance several unusually large items.Carson had decided to stratify the inventory account balance so that the unusually large items are selected.
2____.Carson assigned a higher level of the risk of incorrect rejection initially because he can quickly and inexpensively select additional items for examination if needed.
3____.Carson increased the expected misstatement due to the change in Furniture Expert's method of processing and recording transactions.
4____.Carson conducted a small pilot sample to assess the population's standard deviation.The results indicated that the population was highly variable.
5____.The risk of incorrect acceptance has been decreased because the results of Carson's attributes sampling related to inventory transactions indicated control risk should be increased.
6____.During the audit,Carson realized his initial determination of the population size only included the first 11 months of year.When he corrected the population to include all 12 months the recorded inventory account balance increased by $100,000 and 55 items.

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Definitions:

British Caribbean

The British Caribbean encompasses the Caribbean territories that were once part of the British Empire, including islands such as Jamaica, Barbados, and the Bahamas, known for their diverse cultures and histories.

Plantation Owners

Individuals or entities that owned large agricultural estates primarily in the Southern United States, often worked by enslaved people before the Civil War.

Crop-Lien System

A credit system that existed in the Southern United States post-Civil War, where farmers, many of whom were sharecroppers, secured loans against future crop yields, often leading to debt and economic bondage.

Sharecroppers

Individuals who farm land owned by another and pay rent either in cash or shares of the crop, a system that emerged in the American South after the Civil War.