Assume that the auditor tested an account receivable with a balance of $10,000 and determined that the

Fantastic news! We've Found the answer you've been seeking!

Question:

Assume that the auditor tested an account receivable with a balance of $10,000 and determined that the audited value was $8,500. That is, the auditor determined the receivable was overstated by $1,500.

What is the projected misstatement (excluding the incremental allowance for sampling risk) if the sampling interval is $11,000?

Related Book For answer-question

Auditing a risk based approach to conducting a quality audit

ISBN: 978-1133939153

9th edition

Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg

See More Books

Posted Date: May 10, 2023 03:53 AM

See More Questions

Bill Pei, CPA, is about to begin his audit of the accuracy of his clients accounts receivable. Based on experience, he expects that approximately 1 percent of the clients 40,000 accounts have errors....
Richard Derick has asked you to develop a sampling plan to determine the extent of misstatements in classifying expenditures as repairs and maintenance expense or factory equipment additions. Given...
Which of the following statements is not true with respect to the calculation of the upper limit on misstatements? a. The tainting percentage is determined based on the difference between the...
Using the information for Sarot, Inc., in SE 4 and SE 5, compute the current ratio, quick ratio, receivable turnover, days sales uncollected, inventory turnover, days inventory on hand, payables...
By injecting an electron beam normally to the plane edge of a uniform field Boaz, electrons can be dispersed according to their velocity as in figure.(a) Show that the electrons would be ejected out...
A number of costs and measures of activity are listed below. Cost Description 1. Salary of production manager at a surfboard manufacturer 2. Cost of solder used in making computers 3. Cost of dough...
If you could change a single thing in your community, what would it be? How do you think the change would affect other aspects of your community? As this chapter has shown, cultures and societies...
Flowmaster Forge Inc. is a designer and manufacturer of industrial air-handling equipment that is a wholly owned subsidiary of Howden Industrial Inc. Howden is interested in selling Flowmaster to an...
The angle is given in the figure below. 15 12 a) Find cos 0. 005 (part 2 of 6) 10.0 points b) Find sin 0. 006 (part 3 of 6) 10.0 points c) Find tan 0. 007 (part 4 of 6) 10.0 points d) Find sec 0. 008...
The Porsche Club of America sponsors driver education events that provide high-performance driving instruction on actual racetracks. Because safety is a primary consideration at such events, many...
A man can row 48 km upstream and 56 km downstream in 12 hrs. Also, he can row 54 km upstream and 70 km downstream in 14 hrs. What is the speed of man in still water? A) 4 km/hr B) 10 km/hr C) 12...
How is the formula for the minimum variance hedge ratio changed to take account of daily settlement?
Explain what liquidity preference theory and expectations theory imply about forward interest rates and expected future spot interest rates.
What is the relationship between the quoted price and cash price of a Treasury bill?
How is the three-month contract on SOFR settled?
What overnight rates are expected to replace LIBOR?
Consider the following game tree for some two-player game with incomplete information, and answer the questions given below. N H P2 U/1 D Plx 0.5 L P2 0.5 Ply U Ly P2 D H P2 D AD D U U 2,-5 4,0 3,2...
The ultimate goal of Google, Bing, and other consumer search engines is to provide users with search listings that contain useful information on the topic of their search. What recommendations would...
In September 2012, the PCAOB issued an ORDER INSTITUTING DISCIPLINARY PROCEEDINGS, MAKING FINDINGS, AND IMPOSING SANCTIONSIn the Matter of Jewett, Schwartz, Wolfe & Associates, P.L., Respondent. See...
The auditor is evaluating the internal control of a new client. Management has prepared its assessment of internal control and has concluded that it has some deficiencies, but no significant...
Distinguish between the developments of common law versus statutory law.
Cold Appliances Pty Ltd makes refrigerators and is trying to determine the cost of its ending work in process. The accountant has put together the following data for the year ended 30 June 2025. Each...
Find five interesting facts in Table 1.1. TABLE 1.1 Basic Characteristics of Selected Countries GNP per capita Index of Openness Goods & Services 2009 Population Area (millions) (1,000s sq. km.) Avg....
An apparatus for measuring thermal conductivity employs an electrical heater sandwiched between two identical samples of diameter $25 \mathrm{~mm}$ and length $60 \mathrm{~mm}$, which are pressed...

Assume that the auditor tested an account receivable with a balance of $10,000 and determined that the

Question:

Expert Answer:

To calculate the projected misstatement we use the formula Projected misstateme... View the full answer

Auditing a risk based approach to conducting a quality audit

Students also viewed these accounting questions