Answer case 6

-ASE 6: CLASSICAL APPROACH . DIFFERENCE ESTIMATION, RATIO ESTIMATION and MEAN PER UNIT ESTIMATION using statistical sampling to assist in verifying the prior year end accounts payable balance. an auditor has accumulated the following data: Book Number of Balance balance determined accounts by the auditor Population 4,100 P5,000,000 ? Sample 200 250,000 P300,000 using ratio estimation technique, what would be the auditor's estimate of year-end accounts payable balance? 2. using the information in number 1, what would be the auditor's estimate of the year-end accounts payable balance using the difference estimation method? 3. Using the information in number 1, what would be the auditor's estimate of the year end accounts payable balance using the mean per unit estimation method