Jake Jones. CPA, is price-testing the inventory for the Concord Jar Company. A listing of inventory that includes description, quantity determined by a physical count, unit cost, and extended cost is prepared on the client’s computer system. The listing includes 45 lines per page in part-number order. There are 63 pages, but some pages do not have 45 inventory items, because the description takes two lines. Whenever that happens, the extended dollars for the inventory description are on the second line. There are 2,271 extended inventory items in the inventory.

The auditor has decided to select a stratified sample of the following size:

Required :

a. Design a random selection plan to obtain the 93 sample items in an efficient manner that also meets the requirements of randomness for stratified sampling. Include definition of sampling units, population definition, and all decision rules.

Transcribed Image Text:

Population Sample Stratum Description (as recorded by client) size size 123 Extended inventory, $5,000 23 23 Extended inventory,