Baker Made Several Mistakes in Research Proposal

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This was incorrect. He should have recalculated the sample size again rather than assume that the sample/population ratio was scalable.

Baker also erred when he made the assumption that the sample deviation rate and allowance for sampling risk could be added and compared with the achieved upper deviation rate. This is incorrect -- the calculation should have been made differently.

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Indeed, his calculation of the allowance for sampling risk was done incorrectly. That is the difference between the expected error rate and the tolerable deviation rate, not the expected error rate and the actual error rate (Accounting Institute, 2009).

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