Question: Using statistical sampling to assist in verifying the yearend accounts payable balance, an auditor has accumulated the following data: Number of accounts Book balance Balance

Using statistical sampling to assist in verifying the yearend accounts payable balance, an auditor has accumulated the following data:

Number of accounts Book balance Balance determined by the auditor Population 4,100 $5,000,000 ?

Sample 200 $ 250,000 $300,000 Using the ratio estimation technique, the auditor’s estimate of year-end accounts payable balance would be

a. $6,150,000

b. $6,000,000

c. $5,125,000

d. $5,050,000

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