Evaluation Method Comparison

Q. Are the monetary amounts and overall conclusions similar?

EARTHWEAR CLOTHIERS Evaluation of A/R Confirmations December 31, 2014 10-1 JL 2021-10-28 Results of A/R Confirmations Complete the worksheet below by reviewing the accounts receivable confirmation file contained in the Instructions. Complete the cells below in yellow. If you determine that the difference noted by the customer is a misstatement, record the amount of difference in the "Amount of Misstatement" column. Customer ID Customer Name 652-54310 Red Star Health Group 210-38725 Museum of Flight 254-62418 Summit Hills Country Club 179-26343 Central States Hotels 64 additional items Total Dollar Amount of Items in Sample A/R Balance per clients' records $12,365 $14,235 $24,362 $18,642 $880,560 $950,164 A/R Balance Difference per Reason(s) for Difference (i.e., timing difference, Amount of per Customer Customer transposition error, cut-off error, mistake, etc.) Misstatement $12,365 $0 Transposition error $9 $0 $14,235 Timing difference $0 $21,520 $2,842 Payment on invoice $0 $15,642 $3,000 Credit memo not included in balance $3,000 $880,560 $0 $0 Net misstatement $3,009 Total Dollar Amount of Items in Sampling Population $7,722,000 Nonstatistical Evaluation of Errors Amount of Ratio of Misstatements Misstatement Sample Projected Misstatement Evaluation of Test Results $3,009 0.32% $24,454 The error is far less thaan the tolerable * The ratio of misstatements is simply the computation of the percentage error in dollars tested in the sample. You can find this formula and an illustration of the computation in Chapter 9 (Nonstatistical Sampling section). ** Projected misstatement is the application of the misstatement ratio to the population subject to audit sampling. You can find this formula and an illustration of the computation in Chapter 9 (Nonstatistical Sampling section) EARTHWEAR CLOTHIERS Evaluation of A/R Confirmations December 31, 2014 10-1 JL 2021-10-28 Results of A/R Confirmations Complete the worksheet below by reviewing the accounts receivable confirmation file contained in the Instructions. Complete the cells below in yellow. If you determine that the difference noted by the customer is a misstatement, record the amount of difference in the "Amount of Misstatement" column. Customer ID Customer Name 652-54310 Red Star Health Group 210-38725 Museum of Flight 254-62418 Summit Hills Country Club 179-26343 Central States Hotels 64 additional items Total Dollar Amount of Items in Sample A/R Balance per clients' records $12,365 $14,235 $24,362 $18,642 $880,560 $950,164 A/R Balance Difference per Reason(s) for Difference (i.e., timing difference, Amount of per Customer Customer transposition error, cut-off error, mistake, etc.) Misstatement $12,365 $0 Transposition error $9 $0 $14,235 Timing difference $0 $21,520 $2,842 Payment on invoice $0 $15,642 $3,000 Credit memo not included in balance $3,000 $880,560 $0 $0 Net misstatement $3,009 Total Dollar Amount of Items in Sampling Population $7,722,000 Nonstatistical Evaluation of Errors Amount of Ratio of Misstatements Misstatement Sample Projected Misstatement Evaluation of Test Results $3,009 0.32% $24,454 The error is far less thaan the tolerable * The ratio of misstatements is simply the computation of the percentage error in dollars tested in the sample. You can find this formula and an illustration of the computation in Chapter 9 (Nonstatistical Sampling section). ** Projected misstatement is the application of the misstatement ratio to the population subject to audit sampling. You can find this formula and an illustration of the computation in Chapter 9 (Nonstatistical Sampling section)