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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Customer ID 652-54310 Results of A/R Confirmations Complete the worksheet below by reviewing the accounts receivable confirmation file contained in the Instructions. Complete the cells below in yellow. If you determine that the difference noted by the customer is a misstatement, 210-38725 254-62418 179-26343 63 additional items Total Dollar Amount of Items in Sample Nonstatistical Evaluation of Errors Book Value of Stratum $921,000 Stratum Customer Name Red Star Health Group Museum of Flight Summit Hills Country Club Central States Hotels >$100,000 <$100,000 $7,722,000 Book Value of Sample $921,000 $950,164 A/R Balance per clients' records A/R Balance per Customer $12,365 Enter Amount $14,235 Enter Amount $24,362 Enter Amount $18,642 Enter Amount $880,560 $950,164 EARTHWEAR CLOTHIERS Evaluation of A/R Confirmations December 31, 2019 Known or Factual Misstatement $0 $880,560 $880,560 Ratio of Misstatements 0.0000% Difference per Customer SO $0 Projected Misstatement** SO Reason(s) for Difference (i.e., timing difference, transposition error, cut-off error, mistake, etc.) Indicate reason(s) for difference here. Indicate reason(s) for difference here.. Indicate reason(s) for difference here. Indicate reason(s) for difference here. ......... $0 Net misstatement / Total Audited Value Total Dollar Amount of Items in Sampling Population $0 0.0000% Total Projected Misstatement $0 * The ratio of misstatements is simply the computation of the percentage error in dollars tested in the sample. You can find this formula and an illustration of the computation in Chapter 9 (Nonstatistical Sampling section). ** Projected misstatement is the application of the misstatement ratio to the population subject to audit sampling. You can find this formula and an illustration of the computation in Chapter 9 (Nonstatistical Sampling section) Evaluation of Test Results Enter Evaluation Here 10-1 Initial Here 5/30/2022 Amount of Overstatement Audited Value Enter value of any Enter value of any Enter value of any Enter value of any SO SO $880.560 $880,560 $7,722,000 D 6 3 9 2 3 1 6 D ** Projected misstatement is the application of the misstatement ratio to the population subject to audit sampling. You can find this formula and an illustration of the computation in Chapter 9 (Nonstatistical Sampling section) Statistical Evaluation of Errors using IDEA Monetary Unit Sampling*** Results Overstatements Sample Size Number of errors Gross most likely error Net most likely error Total precision 67 4 Input IDEA Result Input IDEA Result Input IDEA Result Ⓒ The McGraw-Hill Companies, Inc., 2019 Understatements 67 0 Input IDEA Result Input IDEA Result Input IDEA Result Input IDEA Result Input IDEA Result Gross upper error limit Input IDEA Result Net upper error limit Input IDEA Result *** Refer to Chapter 9 of the textbook for additional instructions for evaluating the results with IDEA. Evaluation of Test Results Enter Evaluation Here Evaluation Method Comparison In this space please briefly discuss how the results compare to each other. Are the monetary amounts and overall conclusions similar? IDEA Sample Size Computation Monetary Unit Sampling - Plan Total Value of Sampled Population Use values from database field: AVERAGE_TEMP ⒸPositive values Value of the sampled population: Settings Negative values Confidence level (%): Amount O Percentage Absolute values Tolerable error: Expected error: Change basic precision pricing (BPP) from 100%: Approximate sample size: Sampling interval: Sum of tolerable sample taintings: 7,722,000.00 95.00 600,000.00 154,440.00 100 67 115,253.73 IDEA Sample Evaluation Monetary Unit Sampling - Cell and Classical PPS Evaluation 134.00 % You may accept the population at the 95.00% confidence level when no more than 1.340000 total taintings are observed in a sample of size 67. This is the minimum sample size that will allow you to draw the above conclusion. X Estimate Accept Print Cancel Help X IDEA Sample Evaluation Monetary Unit Sampling - Cell and Classical PPS Evaluation Method ⒸCell evaluation Fields Book value field: Audited value field: AUDITED_VALUE Reference (optional): <NONE> Sample settings O Classical PPS evaluation Confidence level (%): Value of the sampled population: Sample size: Change basic precision pricing from 100% High value handling High value items are in a file High values file: A_R_BALANCE_PER_CLIENTS_RECC Book value field: Audited value field: Reference (optional): Precision limits ⒸUpper Select high values file Upper and lower 95.00 7,722,000.00 67 100.00 Result name: Monetary Unit Sampling - Cell and Classical PPS Evaluation2 OK Cancel Help X 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Customer ID 652-54310 Results of A/R Confirmations Complete the worksheet below by reviewing the accounts receivable confirmation file contained in the Instructions. Complete the cells below in yellow. If you determine that the difference noted by the customer is a misstatement, 210-38725 254-62418 179-26343 63 additional items Total Dollar Amount of Items in Sample Nonstatistical Evaluation of Errors Book Value of Stratum $921,000 Stratum Customer Name Red Star Health Group Museum of Flight Summit Hills Country Club Central States Hotels >$100,000 <$100,000 $7,722,000 Book Value of Sample $921,000 $950,164 A/R Balance per clients' records A/R Balance per Customer $12,365 Enter Amount $14,235 Enter Amount $24,362 Enter Amount $18,642 Enter Amount $880,560 $950,164 EARTHWEAR CLOTHIERS Evaluation of A/R Confirmations December 31, 2019 Known or Factual Misstatement $0 $880,560 $880,560 Ratio of Misstatements 0.0000% Difference per Customer SO $0 Projected Misstatement** SO Reason(s) for Difference (i.e., timing difference, transposition error, cut-off error, mistake, etc.) Indicate reason(s) for difference here. Indicate reason(s) for difference here.. Indicate reason(s) for difference here. Indicate reason(s) for difference here. ......... $0 Net misstatement / Total Audited Value Total Dollar Amount of Items in Sampling Population $0 0.0000% Total Projected Misstatement $0 * The ratio of misstatements is simply the computation of the percentage error in dollars tested in the sample. You can find this formula and an illustration of the computation in Chapter 9 (Nonstatistical Sampling section). ** Projected misstatement is the application of the misstatement ratio to the population subject to audit sampling. You can find this formula and an illustration of the computation in Chapter 9 (Nonstatistical Sampling section) Evaluation of Test Results Enter Evaluation Here 10-1 Initial Here 5/30/2022 Amount of Overstatement Audited Value Enter value of any Enter value of any Enter value of any Enter value of any SO SO $880.560 $880,560 $7,722,000 D 6 3 9 2 3 1 6 D ** Projected misstatement is the application of the misstatement ratio to the population subject to audit sampling. You can find this formula and an illustration of the computation in Chapter 9 (Nonstatistical Sampling section) Statistical Evaluation of Errors using IDEA Monetary Unit Sampling*** Results Overstatements Sample Size Number of errors Gross most likely error Net most likely error Total precision 67 4 Input IDEA Result Input IDEA Result Input IDEA Result Ⓒ The McGraw-Hill Companies, Inc., 2019 Understatements 67 0 Input IDEA Result Input IDEA Result Input IDEA Result Input IDEA Result Input IDEA Result Gross upper error limit Input IDEA Result Net upper error limit Input IDEA Result *** Refer to Chapter 9 of the textbook for additional instructions for evaluating the results with IDEA. Evaluation of Test Results Enter Evaluation Here Evaluation Method Comparison In this space please briefly discuss how the results compare to each other. Are the monetary amounts and overall conclusions similar? IDEA Sample Size Computation Monetary Unit Sampling - Plan Total Value of Sampled Population Use values from database field: AVERAGE_TEMP ⒸPositive values Value of the sampled population: Settings Negative values Confidence level (%): Amount O Percentage Absolute values Tolerable error: Expected error: Change basic precision pricing (BPP) from 100%: Approximate sample size: Sampling interval: Sum of tolerable sample taintings: 7,722,000.00 95.00 600,000.00 154,440.00 100 67 115,253.73 IDEA Sample Evaluation Monetary Unit Sampling - Cell and Classical PPS Evaluation 134.00 % You may accept the population at the 95.00% confidence level when no more than 1.340000 total taintings are observed in a sample of size 67. This is the minimum sample size that will allow you to draw the above conclusion. X Estimate Accept Print Cancel Help X IDEA Sample Evaluation Monetary Unit Sampling - Cell and Classical PPS Evaluation Method ⒸCell evaluation Fields Book value field: Audited value field: AUDITED_VALUE Reference (optional): <NONE> Sample settings O Classical PPS evaluation Confidence level (%): Value of the sampled population: Sample size: Change basic precision pricing from 100% High value handling High value items are in a file High values file: A_R_BALANCE_PER_CLIENTS_RECC Book value field: Audited value field: Reference (optional): Precision limits ⒸUpper Select high values file Upper and lower 95.00 7,722,000.00 67 100.00 Result name: Monetary Unit Sampling - Cell and Classical PPS Evaluation2 OK Cancel Help X

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