Homework Answers
Given
Sample Sizes:
Control 1 : 156
Control 2 : 181
Control 3 : 96
Control 4 : 76
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Using tables 8-5 and 6-6 in your textbook, determine the sample size for each of the control proc...
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....
A. Mason Rowe is testing the effectiveness of an important control for Hart Inc. Rowe is...
A. Mason Rowe is testing the effectiveness of an important control for Hart Inc. Rowe is placing a high level of reliance on this control and has assessed a relatively low risk of assessing control risk too low (5 percent) and tolerable rate of deviation (6 percent). Based on the acceptable risk of overreliance, expected population deviation rate, and tolerable rate of deviation, Rowe determined a sample size of 60 items. The tests of controls revealed three deviations. Required: Calculate...
Mason Rowe is testing the effectiveness of an important control for Hart Inc. Rowe is placing...
Mason Rowe is testing the effectiveness of an important control for Hart Inc. Rowe is placing a high level of reliance on this control and has assessed a relatively low risk of assessing control risk too low (5 percent) and tolerable rate of deviation (6 percent). Based on the acceptable risk of overreliance, expected population deviation rate, and tolerable rate of deviation, Rowe determined a sample size of 60 items. The tests of controls revealed three deviations. Required: Calculate the...
Gurjot Gill Clothing Company manufactures high-quality silk ties that are marketed under a number of trademarked...
Gurjot Gill Clothing Company manufactures high-quality silk ties that are marketed under a number of trademarked names. Capone & Celestin have been the company's auditors for five years. Chrisel Gladson, the senior-in-charge of the audit, has reviewed Gurjot Gill Clothing Company's controls over purchasing and inventory, and has determined that a number of controls can be relied upon to reduce control risk. Chrisel Gladson has decided to test two control procedures over purchases and inventory: (1) purchase orders are agreed...
Gurjot Gill Clothing Company manufactures high-quality silk ties that are marketed under a number of trademarked...
Gurjot Gill Clothing Company manufactures high-quality silk ties that are marketed under a number of trademarked names. Capone & Celestin have been the company's auditors for five years. Chrisel Gladson, the senior-in-charge of the audit, has reviewed Gurjot Gill Clothing Company's controls over purchasing and inventory, and has determined that a number of controls can be relied upon to reduce control risk. Chrisel Gladson has decided to test two control procedures over purchases and inventory: (1) purchase orders are agreed...
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...
Non-Stat Sampling Problem You have been assigned to determine if the stated value of inventory is...
Non-Stat Sampling Problem You have been assigned to determine if the stated value of inventory is within tolerable limits. We show a ledger balance of $1,725,882 which contains 1,734 records. We wish to limit audit risk with a tolerable misstatement amount of 6%. We have done similar audit procedures for the last five years and have noted a small error rate and believe a nonstatistical sample will provide sufficient appropriate audit evidence. Planning 1. Objective – 2. Determine the population...
2. Fernanda Calle Clothing Company manufactures high-quality sikties that are marketed under a number of trademarked...
2. Fernanda Calle Clothing Company manufactures high-quality sikties that are marketed under a number of trademarked names. Capone & Celestin have been the company's auditors for five years. Chase Cetta, the senior-in-charge of the audit, has reviewed Fernanda Calle Clothing Company's control over purchasing and Inventory, and has determined that a number of controls can be relied upon to reduce control risk. Chase Cetta has decided to test two control procedures over purchases and inventory: (1) purchase orders are agreed...
You have been asked to test the effectiveness of Ingo Corporation’s control of manually approving all...
You have been asked to test the effectiveness of Ingo
Corporation’s control of manually approving all purchases over
$25,000. During the year, Ingo Corporation has made 1,000,000
purchases, of which 3,000 were over $25,000. Jian Zhang, CPA, your
supervisor, asked you to use a tolerable deviation rate of 8
percent (although she expects the rate to be only approximately
1.75 percent) and a 5 percent risk of assessing control risk too
low. Use the following to determine the planned assessed...
After completing the tests of controls for inventories and purchases for DTB Inc. for the year...
After completing the tests of controls for inventories and purchases for DTB Inc. for the year ended You have been assigned to work on the accounts receivable section of the 2019 audit of XYZ. You have completed your study of the internal controls (attribute sampling) over sales and receivables and have decided that the key control over the completeness of sales is that shipping orders must be matched to sales invoices. Your first step is to determine the correct sample...
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...
2. Fernanda Calle Clothing Company manufactures high-quality sikties that are marketed under a number of trademarked names. Capone & Celestin have been the company's auditors for five years. Chase Cetta, the senior-in-charge of the audit, has reviewed Fernanda Calle Clothing Company's control over purchasing and Inventory, and has determined that a number of controls can be relied upon to reduce control risk. Chase Cetta has decided to test two control procedures over purchases and inventory: (1) purchase orders are agreed...
You have been asked to test the effectiveness of Ingo
Corporation’s control of manually approving all purchases over
$25,000. During the year, Ingo Corporation has made 1,000,000
purchases, of which 3,000 were over $25,000. Jian Zhang, CPA, your
supervisor, asked you to use a tolerable deviation rate of 8
percent (although she expects the rate to be only approximately
1.75 percent) and a 5 percent risk of assessing control risk too
low. Use the following to determine the planned assessed...
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