Audit Sampling $-$ Part $1($February $2023)$

fxamplent

Scott Duftney, CPA, has randomily selected and audited a sargle of $100$ of Will Mart's acco unts recelvable:

Will$-$mart har $3,000$ accounts regekable acoounts with a total book value of $3),000,000($UNivtese$.$ or TOTAL POPtUCATION$]$

Duffney has determined that the account's tolerable misstatement, is $$250,000($MatEalutm$)$

Duffney tested $($audited$)$ the sample of $100$ Wit$-$Mart's AR accounts and his testing indicated the followirg:

Duffney audited the $100$ AR accounts he selected for testing and calculated the correct amounts for each

Total audit value of all $100$ accounts $=$$$99,000$

Duffney audited the $100$ AR accounts he selected for testing and calculated the correct amounts for each and totaled them up

Average audited value of each audited account $=$$$990$

$($$$99,000$ total audited value of all $100$ accounts tested divided by $100$ accounts tested equal $$990$ average$)$

Will$-$Mart books showed these accounts selected for testing equaled:

Total book value of all accounts selected for testing $=$$$99,800$

The $100$ accounts selected for testing were listed on Wil. Marts books in total of $$99,800$

Average book value of each account audited $=$$$998$

Total book amount $$99,800$ divided by $100$ sample equals average amount of $$998$