ACC 4354 Sampling Problem Classical Variables Sampling

Joe Smith, CPA, has randomly selected and audited a sample of 200 of Wil-Marts accounts receivable. Wil-Mart has 5,000 accounts receivable accounts with a total book value of $5,500,000.

His sample results are as follows:

• Average audited value $1,050
• Average book value $1,125

Calculate the accounts receivable estimated audited value and projected misstatement using the

1. Mean-per unit (Round final answers to whole dollar)
2. Ratio method (Round final answers to whole dollar)
3. Difference method (Round final answers to whole dollar)

Mean Per Unit

Ratio Estimation

Difference Method