The following information relates to a non-statistical sample used for a price test of inventory: Required a.

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The following information relates to a non-statistical sample used for a price test of inventory:

Required
a. What is the best estimate of the total misstatement?
b. Are these results acceptable assuming tolerable misstatement is $15,000? Explain.
c. If the results are not acceptable, what possible courses of action can the auditortake?

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Auditing a business risk appraoch

ISBN: 978-0324375589

6th Edition

Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston

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Question Posted: Dec 29, 2012 06:15 AM

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The following information relates to a non-statistical sample used for a price test of inventory: Required a.

Question:

Population Sample Misstatement $1,000 $1,600 Number Amount $1,600,000 200 1500,000 20 Number Amount $30,000 <$30,000 Total 20 20 $1,600,000 $185,000 $2,785,000 $600 220 $3,10o.000 40

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a Lower stratum projected misstatement 600185000 1500000 486486 Plus top stratum misstatement 100000 ...View the full answer

Auditing a business risk appraoch

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