Showing 121 to 130 of 371 Questions

What is meant by the "percent of misstatement assumption" for MUS in those population items that are misstated? Why is it common to use a 100% misstatement assumption when it is almost certain to be highly conservative?
0133 
An auditor is determining the appropriate sample size for testing inventory valuation using MUS. The population has 2,620 inventory items valued at $12,625,000. The tolerable misstatement for both understatements and overstatements is $500,000 at a 10% ARIA. No misstatements are expected in the population. Calculate the preliminary sample
0434 
Assume that a sample of 100 units was obtained in sampling the inventory in Question. Assume further that the following three misstatements were found:Calculate adjusted misstatement bounds for the population. Draw audit conclusions based on theresults.
0153 
Why is it difficult to determine the appropriate sample size for MUS? How should the auditor determine the proper sample size?
0241 
What is meant by a decision rule using difference estimation? State the decision rule.
0189 
What alternative courses of action are appropriate when a population is rejected using nonstatistical sampling for tests of details of balances? When should each option be followed?
0197 
Define what is meant by the population standard deviation and explain its importance in variables sampling. What is the relationship between the population standard deviation and the required sample size?
0160 
In using difference estimation, an auditor took a random sample of 100 inventory items from a large population to test for proper pricing. Several of the inventory items were misstated, but the combined net amount of the sample misstatement was not material. In addition, a review of the individual misstatements indicated that no misstatem
1232 
Distinguish among difference estimation, ratio estimation, meanperunit estimation, and stratified meanperunit estimation. Give one example in which each can be used. When is MUS preferable to any of these?
1353 
An essential step in difference estimation is the comparison of each computed confidence limit with tolerable misstatement. Why is this step so important, and what should the auditor do if one of the confidence limits is larger than the tolerable misstatement?
0254