Aurellio, an auditor has obtained the listing detail of fixed asset additions for the year under audit
Question:
Aurellio, an auditor has obtained the listing detail of fixed asset additions for the year under audit for a manufacturing client. The auditor plans to test the fixed asset additions using PPS sampling. The auditor is determining whether stratification would improve the efficiency of the audit for testing fixed asset additions. Determine the sample size without stratification and with stratification. The auditor rounds the selected number of items up. The sampling interval is $200,000. Enter the amount of items selected under each method in the appropriate shaded cell.
Fixed Asset Additions .........................Serial Number of Fixed Asset Item Amount
1 ................................................................................2,500,000
2 ................................................................................45,000
3 ................................................................................38,000
4 ................................................................................25,000
5 ................................................................................9,000
6 ................................................................................29,000
7 ................................................................................30,000
8 ................................................................................35,000
9 ................................................................................27,500
10 ................................................................................11,600
11 ................................................................................15,400
12 ................................................................................22,000
13 ................................................................................36,000
14 ................................................................................20,000
15 ................................................................................25,400
16 ................................................................................26,000
17 .............................................................................1,500,000
18 ................................................................................55,000
19 ................................................................................25,000
20 ................................................................................18,500
21 ................................................................................16,500
22 ................................................................................45,000
23 ................................................................................1,500
24 ................................................................................24,500
25 ................................................................................22,500
26 ................................................................................28,600
27 ................................................................................32,000
28 ................................................................................18,000
29 ................................................................................19,000
30 ................................................................................1,200,000
Calculate Sample size with & without stratification. Show step by step calculation.
Expert Answer:
sampling interval Total of all itemsNo of items under stratification 200000 5901000no of i... View the full answer
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston
