You are the auditor of Jexel, an auto air conditioner service and repair company, and you have
Question:
a. Determine the sample size.
b. Assume you tested the sample and got the following results: The mean audited value of the 25 accounts was $122. Assuming that the standard deviation of the sample’s audited value is also $25, will you accept the account as not being materially misstated? What is the projected misstatement for the population?
c. Assuming that the standard deviation of the sample’s audited value is $20, will you accept the account as not being materially misstated? Show your calculations. What is the projected misstatement for the population?
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Related Book For
Principles of Auditing and Other Assurance Services
ISBN: 978-0078025617
19th edition
Authors: Ray Whittington, Kurt Pany
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