The following are auditor judgments and attributes sampling results for six populations. Assume large population sizes. 1 2 3 4 5 6
EPER (in percent) 2 1 1 0 3 8
TER (in percent) 6 5 20 3 8 15
ARO (in percent) 5 5 10 5 10 10
Actual sample size 100 100 20 100 60 60
Actual number of
exceptions in the sample 2 4 1 0 1 8

Required:
a. For each population, did the auditor select a smaller sample size than is indicated by using the attributes sampling above in the table for determining sample size? Evaluate selecting either a larger or smaller size than those determined in the tables.
b. Calculate the SER and CUER for each population.
c. For which of the six populations should the sample results be considered unacceptable? What options are available to the auditor?
d. Why is analysis of the exceptions necessary even when the populations are considered acceptable?

The selling price of houses would be most likely to decrease if there were first a decrease in which of the following? a. new-housing construction. b. mortgage interest rates. c. the unemployment rate. d. construction workers' wages. 2b2t

Franklin painting company is considering whether to purchase a new spray paint machine that costs $4,800. the machine is expected to save labor, increasing net income by $720 per year. the effective life of the machine is 15 years according to the manufacturer’s estimate. required determine the unadjusted rate of return based on the average cost of the investment.

At april 1, 2019, the food and drug administration is in the process of investigating allegations of false marketing claims by hulkly muscle supplements. the fda has not yet proposed a penalty assessment. hulkly’s fiscal year ends on december 31, 2018. the company’s financial statements are issued in april 2019. required: for each of the following scenarios, determine the appropriate way to report the situation. 1. management feels an assessment is reasonably possible, and if an assessment is made an unfavorable settlement of $13 million is reasonably possible. 2. management feels an assessment is reasonably possible, and if an assessment is made an unfavorable settlement of $13 million is probable. 3. management feels an assessment is probable, and if an assessment is made an unfavorable settlement of $13 million is reasonably possible. 4. management feels an assessment is probable, and if an assessment is made an unfavorable settlement of $13 million is probable.