A. (2)- Occurrence
B. (1)- Accuracy
C. (3)- Monthly statements are sent to customers and any discrepancies are resolved by someone independent of cash handling and accounting.
D. (4)- existing cash receipts are recorded.
A.(4)- Receiving reports are prepared for all materials received and such reports are accounted for on a timely basis.
B.(3)- Employees involved in the credit-granting function are separated from the sales function
C.(1)- Prelistings and predetermined totals are used to control postings.
D.(2)- As goods leave the shipping dock, the system generates a bill of lading and associated sales invoice, which is automatically recorded in the sales journal.
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(3)- A randomly chosen sample may not be representative of the population as a whole for the characteristic of interest.
C. (2)- Inspecting employee time cards for proper approval by supervisors.
FOR THE POPULATION
1. Sales invoice
All invoices numbered 0001 to 8274
2. Bill of lading
All bills of lading numbered 18221 through 29427 (if a random number table is used, the left-most digit “2” can be dropped)
A pair of random numbers, where the first random number is the page number (1-20), and the second random number is the line number on the page (1-50)
4. Line numbers on the sales journal that have a sales invoice recorded on them
A pair of random numbers, where the first random number is the page number (1-215), and the second random number is the invoice as counted down from the top of the page (1-100)
An example random sampling plan prepared in Excel (P1525.xls) is available on the Companion Website. The command for selecting the random number can be entered directly onto the spreadsheet, or can be selected from the function menu (math & trig) functions. It may be necessary to add the analysis tool pack to access the RANDBETWEEN function. Once the formula is entered, it can be copied down to select additional random numbers. When a pair