Use the following information pertaining to A/R for the client for Questions 1 through 4: Customer...

   

Transcribed Image Text:

Use the following information pertaining to A/R for the client for Questions 1 through 4: Customer A Balance: $10,000 $20,000 $60,000 $70,000 $120,000 $10,000 $40,000 Customer B Balance: Customer C Balance: Customer D Balance: Customer E Balance: Customer F Balance: Customer G Balance: Customer H Balance: $20,000 Customer I Balance: Customer J Balance: $300,000 $50,000 Acceptable Level of Audit Risk: 10% Sample Interval: $70,000 Random Start Value: $350,000 1: Of items A through J, which would be selected for A/R confirmations? How did you determine that? Question #2: If the acceptable level of Audit Risk was reduced to 5%, what would be the impact to the sample interval? Why? Use the following information pertaining to A/R for the client for Questions 1 through 4: Customer A Balance: $10,000 $20,000 $60,000 $70,000 $120,000 $10,000 $40,000 Customer B Balance: Customer C Balance: Customer D Balance: Customer E Balance: Customer F Balance: Customer G Balance: Customer H Balance: $20,000 Customer I Balance: Customer J Balance: $300,000 $50,000 Acceptable Level of Audit Risk: 10% Sample Interval: $70,000 Random Start Value: $350,000 1: Of items A through J, which would be selected for A/R confirmations? How did you determine that? Question #2: If the acceptable level of Audit Risk was reduced to 5%, what would be the impact to the sample interval? Why?

Answer rating: 100% (QA)

1 The confirmations for AR account balances shall be taken from customer CDEGI and J and it is deter... View the full answer