The auditors wish to test the valuation of accounts receivable in the audit of Kaplan Corporation. The client has of total recorded receivables, composed of 2,000 accounts. The auditors have decided to use structured non-statistical sampling and have determined the following:
Tolerable misstatement $50,000
Assessment of inherent and control risk Moderate
Risk related to other substantive procedures Moderate
a. Calculate the required sample size.
b. Assume that the auditors have tested the sample and discovered three misstatements:
Book value Audited value
$100 $90
512 600
900 520
The remainder of the sample had an average value (book and audited) of S501. OO. Use the ratio estimation method to calculate the projected misstatement of the population.
c. Use the results obtained in (b) to come to a conclusion about whether to "accept" or "reject" the population.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The auditors wish to test the valuation of accounts receivable in the audit of Kaplan Corporation. The client has of total recorded ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
An individual's ecological footprint is equivalent to the: a. total amount of food consumed by that individual. b. total amount of energy used by that individual. c. total amount of carbon emissions from that individual's car. d.
Answers (1)
What does supply and demand determine in the home pricing market? a. durability b. price c. quality d. style
Answers (1)
Dagny taggart has just purchased a home and taken out a $400,000 mortgage. The mortgage has a 30minus-year term with monthly payments and has an apr of 5.4%.
Answers (1)
A certain government passed its budget for the fiscal year ended December 31, 2017. Estimated Revenues amounted to $13,000,000; Appropriations amounted to $12,000,000; Estimated Other Financing Uses amounted to $700,000;
Answers (1)
On March 11, 20XX, the existing or current (spot) one-year, two-year, three-year, and four-year zero-coupon Treasury security rates were as follows: 1R1 = 4.75%, 1R2 = 4.95%, 1R3 = 5.25%, 1R4 = 5.
Answers (1)
New Questions in Business
A firm realizes that the market price has fallen below its average total costs, and it is now earning a loss. what is the best action for the firm to take in the short run?
Answers (1)
Fixed expenses: a. includes labor, raw materials, and commissions. b. can be estimated by taking into consideration the production. c. are incurred regardless of sales volume. d. must be linked to strategy in the business plan
Answers (1)
4) Which of the following is least likely to be your primary health care provider? a. an allergist b. an internist c. an obstetrician-gynecologist
Answers (1)
T/F A macroeconomist would be concerned with the following statement. "Two major hurricanes caused significant damage to the eastern seaboard and led to a fall in GDP and a rise in unemployment in the U. S. economy."
Answers (1)
At the beginning of the year, Mitchum Enterprises allows for estimated uncollectible accounts of $14,000. By the end ofthe year, actual bad debts total $15,000. Record the write-off to uncollectible accounts.
Answers (1)