The following items apply to statistical sampling. Choose the best response.

a. There are many kinds of statistical estimates that an auditor may find useful, but basically, every accounting estimate is either of a quantity or of an error rate. The statistical terms that roughly correspond to “quantities” and “error rate,” respectively, are:

(i) Attributes and variables

(ii) Variables and attributes

(iii) Constants and attributes

(iv) Constants and variables

b. In connection with his review of charges to the plant maintenance account, Mr. Wilson is undecided whether to use probability sampling or judgment sampling. As compared to probability sampling, judgment sampling has the primary disadvantage of

(i) Providing no known method for making statistical inferences about the population solely from the results of the sample

(ii) Not allowing the auditor to select those accounts that he believes should be selected

(iii) Requiring that a complete list of all the population elements be compiled

(iv) Not permitting the auditor to know which types of items will be included in the sample before the actual selection is made

c. In an examination of financial statements, a CPA would not find the use of statistical sampling techniques to be generally applicable if

(i) The population of items were large

(ii) Absolute precision of measurement were required

(iii) None of the items were individually significant

(iv) The population were not normally distributed