Joe Jones Walked Out of the Old Rock Bakery Operation

question 5

Essay

Joe Jones walked out of the Old Rock Bakery operation and chewed on a Cheese Danish. He had chosen random selection to test for proper authorization of purchasing transactions. He had just completed the initial audit testing of the purchasing transactions and had evaluated the results. His conclusion was that the deviation rate of 12 exceptions in a sample of 80 transactions was relatively high.
In addition, Joe was preparing to start the audit of another client, Rohr Industries, an airplane component manufacturer. He had discussed sampling methodology with his audit team and it had been determined that the Rohr Industries systems did not lend themselves easily to statistical sampling techniques. The audit team would have to employ non-statistical sampling.
Required:
a) What is the procedure that Joe Jones would follow when his initial testing showed a relatively high deviation rate for the Old Rock Bakery transactions?
b) What is non-statistical sampling?
c) Describe the non-statistical sampling methods that were open to Joe and his team for the Rohr Industries audit.
d) Which of Joe's two clients' systems would lend themselves to stratification?

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Definitions:

Genetically Influenced Abnormalities

Disorders or conditions that are significantly affected by genetic factors, which can lead to deviations from the typical or expected physical or mental development.

Psychological Disorder

A condition characterized by abnormal thoughts, feelings, and behaviors that may cause distress or impairment in functioning.

Socially Withdrawn

A behavior pattern characterized by a significant reduction in social interaction and engagement with others.

Functioning Effectively

The ability to successfully manage daily activities and roles across various domains of life, such as social, work, and personal care.