Alice Rathermel audited LoHo Companys inventory using sampling. She examined 120 items from an inventory compilation list
Question:
Alice Rathermel audited LoHo Company’s inventory using sampling. She examined 120 items from an inventory compilation list and discovered net overstatement of $ 480. The audited items had a book (recorded) value of $ 48,000. There were 1,200 inventory items listed, and the total recorded inventory amount was $ 490,000. What is the projected mis-statement using mean- per- unit estimation?
a. $ 480
b. $ 576,000
c. $ 10,000
d. $ 480,000
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a Incorrect 480 is the amount of the actual misstatement not the projected misstatement b Incorrect ...View the full answer
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Related Book For
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
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