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 of these accounts is $3,460,000.
The company has a tolerable error of $63,460.
The anticipated error is $13,000.
The risk of incorrect acceptance is 5%.
The acceptable number of overstatements of misstatements is 2.
Use probability proportional to size (PPS) sampling to do the following:
A. Determine the reliability factor.
B. Determine the correct expansion factor.
C. Determine the sample size you should use.
D. Determine the sampling interval you should use.
E. The objective of using probability proportional to size sampling (PPS) to test account balances
F. Specifically, how you used PPS to test this company's account balances
G. The purpose of the sample size and the sampling interval
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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...
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...
Show me some pictures of some objective of using probability proportional to size sampling (PPS) to...
Show me some pictures of some objective of using probability proportional to size sampling (PPS) to test account balances. How do an individual use PPS to test account balances and what is the purpose of the sample size and the sampling interval?
You are the auditor of Jexel, an auto air-conditioner service and repair company, and you have...
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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...
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...
Need help on these 2 questions, thank you. Question 5 View Policies Current Attempt in Progress...
Need help on these 2 questions, thank you.
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hi Chapter 8 An auditor is applying statistical sampling for attributes to the testing of extensions...
hi
Chapter 8 An auditor is applying statistical sampling for attributes to the testing of extensions of 1000 line items on sales invoices. Ade iation is defined as an extension mistake on a line Le line #39 quantity of 10 and unit price of $100 is calculated as $900). The auditor decides to use a 10% Risk of Overreliance, a Tolerable Deviation Rate of 6%, and an expected population deviation rate of 2%. (idole) and an Assume the following deviation...
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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 9,600 accounts with a total book value of $1,270,000. You decide to use tolerable misstatement of $217,000, an incorrect acceptance risk of 20 percent, and an incorrect rejection risk of 15.0 percent. Using Excel, you estimated the standard deviation of the population as...
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...
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...
Need help on these 2 questions, thank you.
Question 5 View Policies Current Attempt in Progress The critical difference between statistical and nonstatistical sampling is: O the required use of judgment in nonstatistical sampling. o the use of the laws of probability in statistical sampling to determine sample size and develop a confidence interval around the results of the sample. O that more representative samples are attained with statistical sampling. o the elimination of nonsampling risk with statistical sampling. Question...
hi
Chapter 8 An auditor is applying statistical sampling for attributes to the testing of extensions of 1000 line items on sales invoices. Ade iation is defined as an extension mistake on a line Le line #39 quantity of 10 and unit price of $100 is calculated as $900). The auditor decides to use a 10% Risk of Overreliance, a Tolerable Deviation Rate of 6%, and an expected population deviation rate of 2%. (idole) and an Assume the following deviation...
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