Take the population in the table and perform the following (use sampling without replacement and a standard
Question:
Take the population in the table and perform the following (use sampling without replacement and a standard deviation of the recorded amounts of 20),
a. Determine the sample size for a classical statistical sample using mean estimation. Assume a tolerable misstatement of \(\$ 2,000\), a risk of incorrect rejection of 20 percent, and a risk of incorrect acceptance of 10 percent.
b. Take the sample using either systematic or unrestricted random sampling. Assume that the recorded and audited amounts are the same except for the following.
c. Calculate a projected misstatement. Calculate an achieved allowance for sampling risk.
d. Indicate whether the sampling results are acceptable or unacceptable. Explain your reason.
Step by Step Answer:
Auditing An Assertions Approach
ISBN: 9780471134213
7th Edition
Authors: G. William Glezen, Donald H. Taylor