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 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...
17 Saved Rachel Robertson wishes to use mean-per-unit sampling to evaluate the reasonableness of the book value of the accounts receivable of Smith, Inc. Smith has 10,800 receivable accounts with a total book value of $1,575,000. Robertson estimates the population's standard deviation to be equal to $21. After examining the overall audit plan, the auditors believe that the account's tolerable misstatement is $69,000, and that a risk of incorrect rejection of 10 percent and a risk of incorrect acceptance of...
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...
Q. If the population mean is 310, sample mean is 295, sample's standard deviation is 55, what is the power of the test (representing Type II error) for a sample size of 20? Apply the Type II error analysis with the operation curve below, and find out the power of the test? Does it match with the value you got from above? 1.0 0.8 0.6 0.4 0.2 Q. If the population mean is 310, sample mean is 295, sample's standard...
15 Assume that you have selected the following nonstatistical sample for selecting accounts receivable for confirmation. The total book value of the population is $9,000,000, and tolerable misstatement is $350,000. You have decided to audit every item over $50,000 and randomly select items in two groups under $50,000, as the following shows. You selected the following sample. Stratum N n a) >$50,000 b) 50,000>X>4,999 c) <5,000 20 100 300 20 30 30 Book Value of Stratum $3,000,000 3,000,000 3,000,000 9,000,000...
Only b and c. Thank you! AP10.8 (LO 8) Evaluating a PPS sample Assume the following misstatements were found in a PPS sample: Sample Item Book Value Audit Value $ 650 540 1,900 2,200 2,800 $ 585 0 0 1,650 2,660 Required a. Calculate the projected misstatement assuming: • The sampling interval was $1,800. The sampling interval was $ 2,000. b. If a risk of incorrect acceptance of 15% is specified in the sample design, the sampling interval is $2,000,...
You wish to test the following claim (Ha) at a significance level of α-0.001 You believe both populations are normally distributed, but you do not know the standard deviations for either However, you also have no reason to believe the variances of the two populations are not equal. You obtain a sample of size n,-26 with a mean of M, 69.3 and a standard deviation of SD,-10.8 from the first population. You obtain a sample of size n2 11 with...
You wish to test the following claim (Ha) at a significance level of a 0.005. Ho: μ-68.2 Ha: μ > 68.2 You believe the population is normally distributed, but you do not know the standard deviation. You obtain a sample of size n 30 with a mean of M 78.9 and a standard deviation of SD -14.7 What is the critical value for this test? (Report answer accurate to three decimal places.) critical value- What is the test statistic for...
You wish to test the following claim (H) at a significance level of a = 0.001. H:41 = M2 H:M 7 H2 You obtain a sample of size m 101 with a mean of M = 79.4 and a standard deviation of SD = 15.3 from the first population. You obtain a sample of size ng = 36 with a mean of M2 = 80.8 and a standard deviation of SD = 14.4 from the second population. What is the...
You wish to test the following claim (H) at a significance level of a = 0.001. H:M1 = H2 H:41 € M2 You obtain a sample of size n1 = 101 with a mean of M = 79.4 and a standard deviation of SD = 15.3 from the first population. You obtain a sample of size ny = 36 with a mean of M2 and a standard deviation of SD2 = 14.4 from the second population. What is the critical...