Discuss AICPA CPA-Auditing Exam Topic 1 Question 70

Stratified mean per unit (MPU) sampling is a statistical technique that may be more efficient than unstratified MPU because it usually:

AMay be applied to populations where many monetary errors are expected to occur.

BProduces an estimate having a desired level of precision with a smaller sample size.

CIncreases the variability among items in a stratum by grouping sampling units with similar characteristics.

DYields a weighted sum of the strata standard deviations that is greater than the standard deviation of the population.

Suggested Answer: B

Choice 'b' is correct. A stratified sample generally is more efficient than an unstratified sample since the population is classified in a manner that emphasizes the higher dollar value items. The result is an estimate having a desired level of precision with a smaller sample size.

Choice 'a' is incorrect. Both stratified and unstratified MPU may be used for populations where many monetary errors are expected to occur.

Choice 'c' is incorrect. Stratified sampling reduces the variability among items in a stratum.

Choice 'd' is incorrect. Standard deviations measure variability, and stratification would tend to reduce the strata standard deviations as compared to the overall standard deviation of the population.

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15 comments · newest first

Gerri 11 months ago

Totally agree with B, precision matters!

Maurine 11 months ago

Wait, D sounds surprising! How can it yield a greater standard deviation?

Portia 12 months ago

C doesn't sound right, isn't it supposed to reduce variability?

Marjory 12 months ago

A seems valid too, especially with monetary errors.

Cherry 12 months ago

I think B is the best choice! Smaller sample size is key.

Leatha 1 year ago

I feel like option A might be relevant, but I can't quite remember how it connects to the efficiency of stratified sampling.

Jolanda 1 year ago

I vaguely recall something about increasing variability in strata, but I thought that was more of a drawback than a benefit.

Ozell 1 year ago

I think option B sounds right because it aligns with what we practiced about efficiency in sampling methods.

Celestina 1 year ago

I remember we discussed how stratified sampling can lead to more precise estimates, but I'm not sure if that means it always requires a smaller sample size.

Sunny 1 year ago

I'm a bit unsure about this one. The error message doesn't give me a clear indication of what the problem might be. I'll need to review the options and try to eliminate the less likely ones.

Ilda 1 year ago

I'm leaning towards option C. Creating a Shared VPC seems like the best way to give the networking team control over the network resources while keeping the development team's sensitive data isolated.

Pamella 1 year ago

I'm a bit unsure about the last option of finding all active members and creating a policy for them. That seems like it could get unwieldy as the organization grows.

Effie 1 year ago

I think SNMP uses UDP, but I can't quite remember the details of why it was chosen over TCP.

Cassie 1 year ago

Ah, I've seen this type of question before. The key is using the `kubectl get pods -o jsonpath` command with the right JSON path expression to extract just the pod name and IP address. I think option A has the correct syntax for that.

Golda 1 year ago

I remember practicing a question where Title 5 was mentioned, but I don't think that's the right one for criminal law.

AICPA CPA-Auditing Exam - Topic 1 Question 70 Discussion