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Stratified selection, when used in an auditor's statistical sampling plan, A. Eliminates the need for calculating precision. Is appropriate only when items in the universe are relatively homogeneous B. C. Eliminates the need for random sampling O D. Permits the auditor to use different sample selection techniques in each stratum. A relative of a covered member's spouse is a chief financial officer (CFO) in a closely held corporation. The covered member is a partner in a CPA firm in the same geographical area. Which of the following is true? O A. If the relative is the covered member's mother-in-law, the firm's independence is impaired. B. I the relative is the covered member's brother-in-law with whom frequent social contacts are maintained, the firm's independence will be considered to be impaired even if another partner of the firm conducted the audit. C. If the relative is an uncle by marriage with whom personal contacts are very infrequent, the independence of the covered member's firm with respect to this corporation will not usually be considered to be impaired. D.Under no circumstances will the covered member be considered independent with respect to this corporation An auditor randomly selects 100 items of finished goods recorded in the perpetual Inventory, physically counts them, and computes an audited amount for each (calculated as quantity times unit cost per production reports). The auditor then compares the audited amount with the recorded amount (inventory cost per perpetual inventory records) and uses difference estimation to estimate the correct total for the finished goods inventory. Results of the 100-item sample: Total audited amount $605,000 Total recorded amount (of these 100 items) $630,000 Number of items incorrectly stated (out of 100) 17 The total recorded amount of the entire finished goods inventory (1,100 items) is $6.988.000. On the basis of difference estimation, the auditor's best guess (point estimate) as to the correct total is A $6,713,000 B. $6,963,000 C. $7,263,000 OD. $6.710,698

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