Rachel Robertson wishes to use mean-per-unit sampling to evaluate the reasonableness of the book value of the
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Rachel Robertson wishes to use mean-per-unit sampling to evaluate the reasonableness of the book value of the accounts receivable of Smith, Inc. Smith has 10,600 receivable accounts with a total book value of $1,570,000. Robertson estimates the population's standard deviation to be equal to $24. After examining the overall audit plan, the auditors believe that the account's tolerable misstatement is $66,000, and that a risk of incorrect rejection of 5 percent and a risk of incorrect acceptance of 10 percent are appropriate. Use Figure 9.8.
Related Book For
Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
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