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  • JameroJimmyJr, ACB Sampling

    Transféré par

    Jhoylie Besin
    579 vues2 pages
    The document summarizes 10 incorrect assumptions, statements, and inappropriate applications of attribute sampling in Baker's procedures: 1) Baker's sample was not randomly selected. 2) Baker incorrectly used a discovery sampling technique. 3) Baker incorrectly calculated the allowance for sampling risk. 4) Baker's tolerable deviation rate and acceptable upper precision limit were too high to assess control risk at a low level. 5) Baker's assumption that statistical sampling eliminates the need for judgment is incorrect. 6) Baker's sample size was unaffected by the increased population size. 7) Baker's population was mistaken. 8) Baker should not have considered a €9 difference immaterial without proper testing. 9) Baker incorrectly deferred consideration of allowable risk. 10) Baker

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    The document summarizes 10 incorrect assumptions, statements, and inappropriate applications of attribute sampling in Baker's procedures: 1) Baker's sample was not randomly selected. 2) Baker incorrectly used a discovery sampling technique. 3) Baker incorrectly calculated the allowance for sampling risk. 4) Baker's tolerable deviation rate and acceptable upper precision limit were too high to assess control risk at a low level. 5) Baker's assumption that statistical sampling eliminates the need for judgment is incorrect. 6) Baker's sample size was unaffected by the increased population size. 7) Baker's population was mistaken. 8) Baker should not have considered a €9 difference immaterial without proper testing. 9) Baker incorrectly deferred consideration of allowable risk. 10) Baker

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    Attribution Non-Commercial (BY-NC)
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    Signaler comme contenu inapproprié
    579 vues2 pages

    JameroJimmyJr, ACB Sampling

    Transféré par

    Jhoylie Besin
    The document summarizes 10 incorrect assumptions, statements, and inappropriate applications of attribute sampling in Baker's procedures: 1) Baker's sample was not randomly selected. 2) Baker incorrectly used a discovery sampling technique. 3) Baker incorrectly calculated the allowance for sampling risk. 4) Baker's tolerable deviation rate and acceptable upper precision limit were too high to assess control risk at a low level. 5) Baker's assumption that statistical sampling eliminates the need for judgment is incorrect. 6) Baker's sample size was unaffected by the increased population size. 7) Baker's population was mistaken. 8) Baker should not have considered a €9 difference immaterial without proper testing. 9) Baker incorrectly deferred consideration of allowable risk. 10) Baker

    Droits d'auteur :

    Attribution Non-Commercial (BY-NC)
    Téléchargez comme DOCX, PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    sur 2

    Jamero Jimmy Jr. C.

    Bs- Accountancy 4

    Accounting 11.1 - ACB August 15, 2012

    My answers regarding some incorrect assumptions, statements, and inappropriate application of attribute sampling in Bakers procedures: 1. Baker took a sample of 100 invoices by selecting the first twenty-five invoices from the first month of each quarter. This is an inappropriate statement for the sample selected was not randomly selected. 2. It is said it used a discovery sampling technique where in fact it is not, for discovery sampling technique is a method of sampling to assess whether the percentage error is not in excess of a specified percentage of the population and in the case it doesnt match. Thus I can say discovery sampling is not a suitable sampling technique in this attribute sampling application. 3. Baker then calculated the allowance for sampling risk to be 5%, the difference between the actual sample deviation rate (8%) and the expected error rate (3%). This statement inaccurate for the allowance for sampling risk is calculated is an incorrect.

    4. If Baker plans to assess control risk at a low level the tolerable rate of deviation, the acceptable upper precision limit (UPL) that was established for 20 % is too big and so high in order to assess control risk at low level. 5. For the current year Baker used a statistical sample in the tests of controls to eliminate the need for judgment. This assumption is incorrect for it does not eliminate the need for judgment. 6. I guess when Baker increased the population size; the effect has little or no effect at all in determining sample size. 7. Bakers assumption to the population of 10000 shipping documents from which the sample of 100 invoices was chosen was a mistaken population.

    8. Baker considered this 9 the difference of 10,443 and 10,434 to be immaterial and did not count it as an error. This statement is inappropriate for Baker failed to consider the difference of an immaterial amount to be an error. I believe that all must appropriately tested to qualify as immaterial and if it is immaterial it must not directly subject for no error. 9. Baker decided to defer consideration of allowable risk of assessing control risk too low (risk of overreliance) until evaluating the sample results . This statement assumes to defer the consideration of allowable risk of assessing control risk that is why it failed to consider such in determining the sample size. 10. Baker reasoned that the actual sample deviation rate (8%) plus the allowance for sampling risk (5%) was less than the achieved UPL (14%); therefore, the sample supported a low level of control risk. Baker's generalization and conclusion concerning his decision that the sample supported a low assessed level of control risk was incorrect and for this it is erroneous.

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