Which of the following factors is least likely to influence the auditor’s determination of an appropriate...
Which of the following factors is least likely to influence the auditor’s determination of an appropriate sample size when testing the existence assertion for inventory?
Group of answer choices
Acceptable risk of incorrect acceptance
Anticipated misstatement
Tolerable misstatement
Allowance for sampling risk
Book value of the inventory account
Homework Answers
The following factors is least likely to influence the auditor’s determination of appropriate sample size when testing the existence assertion for inventory:-
Book value of the inventory account
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Which of the following factors is least likely to influence the
auditor’s determination of an appropriate...
When selecting a sample size for substantive tests of balances which factor, other factors being equal,...
When selecting a sample size for substantive tests of balances which factor, other factors being equal, would result in a larger sample? An increase in the tolerable misstatement An increase in the acceptable risk of incorrect acceptance Small expected misstatements A decrease in the tolerable misstatement
Please answer A, B, C Thanks! only used for Class Discussion Exercise Kayla Reed is using...
Please answer A, B, C
Thanks!
only used for Class Discussion Exercise Kayla Reed is using mean-per-unit estimation in the audit of Hamilton's inventory balances. Hamilton's inventory is recorded at $240,000 and comprises 1.200 different items. Reed determined a sample size of 120 items and performed the appropriate substantive procedures and based on this sample, determined the following: Average audited value (per item) Standard deviation of audited values $ 204 $ 22 A summary of some additional parameters estimated by...
MUST USE EXCEL EQUATIONS Daily and Johnson, CPAs were conducting the audit of GarnerTool Supply ...
MUST USE EXCEL EQUATIONS
Daily and Johnson, CPAs were conducting the audit of
GarnerTool Supply for the year ended December 31. Cindy Steward,
senior-in-charge of the audit, plans to use MUS to audit Garner's
inventory account. The balance in the inventory account at December
31 was $8,000,000.
Requirements:
a) Based on the information in the spreadsheet, calculate the
requiredMUS sample size and sampling interval
b) Steve Brents, staff accountant, used the sample items
selected in part (a) and performed the...
Chapter 9 Audit Sampling 1.Three factors that determine the sample size are the risk of assessing...
Chapter 9 Audit Sampling 1.Three factors that determine the sample size are the risk of assessing control risk too high, tolerable deviation rate, and the expected population deviation rate. a. True b.False 2.While performing a substantive test of details during an audit, the auditor determined that the sample results supported the conclusion that the recorded account balance was materially misstated. It was, in fact, not materially misstated. This situation illustrates the risk of a. Incorrect rejection b. Incorrect acceptance c....
You are the auditor for a company and need to review the company’s accounts receivable using...
You are the auditor for a company and need to review the company’s accounts receivable using probability proportional to size (PPS) sampling. In addition, the board of directors has requested that you and your team present an explanation of your PPS process at its next monthly meeting. Individual Portion: Use the following company data and the PPS Sampling Tables 1 & 2: The recorded book value of these accounts is $3,460,000. The company has a tolerable error of $63,460. The...
You are the auditor for a company and need to review the company’s accounts receivable using...
You are the auditor for a company and need to review the company’s accounts receivable using probability proportional to size (PPS) sampling. In addition, the board of directors has requested that you and your team present an explanation of your PPS process at its next monthly meeting. Use the following company data and the PPS Sampling Tables 1 & 2: (The data below is the PPS sampling table, they just changed the format from the table) The recorded book value...
You are the auditor of Jexel, an auto air-conditioner service and repair company, and you have de...
You are the auditor of Jexel, an auto air-conditioner service and repair company, and you have decided to use the mean-per-unit method to test the existence and gross valuation of recorded accounts receivable. The client's records include 10,200 accounts with a total book value of $1,275,000. You decide to use tolerable misstatement of $162,000, an incorrect acceptance risk of 10 percent, and an incorrect rejection risk of 5.0 percent. Using Excel, you estimated the standard deviation of the population as...
1: Which of the following clinical activities is least likely to influence public health? Group of...
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Please help with problem 8-56 and 8-57. Thank you!!! 8-56 106 Assume you are planning the...
Please help with problem 8-56 and 8-57. Thank
you!!!
8-56 106 Assume you are planning the confirmation of accounts receivable. There are 2,000 customer accounts with a total book! value of $5,643,200. Tolerable misstatement is set at $200,000, and expected misstatement is $40,000. The risk of incorrect accep- tance is 30%. The ratio of expected to tolerable misstatement is 20%, and the ratio of tolerable misstatement to the population is 3.5% (round down to 3% for use in Exhibit 8.7)...
Please answer A, B, C
Thanks!
only used for Class Discussion Exercise Kayla Reed is using mean-per-unit estimation in the audit of Hamilton's inventory balances. Hamilton's inventory is recorded at $240,000 and comprises 1.200 different items. Reed determined a sample size of 120 items and performed the appropriate substantive procedures and based on this sample, determined the following: Average audited value (per item) Standard deviation of audited values $ 204 $ 22 A summary of some additional parameters estimated by...
MUST USE EXCEL EQUATIONS
Daily and Johnson, CPAs were conducting the audit of
GarnerTool Supply for the year ended December 31. Cindy Steward,
senior-in-charge of the audit, plans to use MUS to audit Garner's
inventory account. The balance in the inventory account at December
31 was $8,000,000.
Requirements:
a) Based on the information in the spreadsheet, calculate the
requiredMUS sample size and sampling interval
b) Steve Brents, staff accountant, used the sample items
selected in part (a) and performed the...
You are the auditor of Jexel, an auto air-conditioner service and repair company, and you have decided to use the mean-per-unit method to test the existence and gross valuation of recorded accounts receivable. The client's records include 10,200 accounts with a total book value of $1,275,000. You decide to use tolerable misstatement of $162,000, an incorrect acceptance risk of 10 percent, and an incorrect rejection risk of 5.0 percent. Using Excel, you estimated the standard deviation of the population as...
Please help with problem 8-56 and 8-57. Thank
you!!!
8-56 106 Assume you are planning the confirmation of accounts receivable. There are 2,000 customer accounts with a total book! value of $5,643,200. Tolerable misstatement is set at $200,000, and expected misstatement is $40,000. The risk of incorrect accep- tance is 30%. The ratio of expected to tolerable misstatement is 20%, and the ratio of tolerable misstatement to the population is 3.5% (round down to 3% for use in Exhibit 8.7)...
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