Given: Population- 500 accounts Sample- 100 accounts Book Value of Sample- $20,000 Population Book Value- $75,000 Audit

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

Question:

Given:

Population- 500 accounts

Sample- 100 accounts

Book Value of Sample- $20,000

Population Book Value- $75,000

Audit Value of Sample- $18,000

Tolerable error- $8,000

Using $ ratio estimation, the total projected error is

a. $8,000

b. $10,000

c. $7,500

d. $25,000

e. $17,000

Related Book For answer-question

Principles of Auditing and Other Assurance Services

ISBN: 978-0078025617

19th edition

Authors: Ray Whittington, Kurt Pany

See More Books

Posted Date: Sep 27, 2022 07:18 AM

See More Questions

The quantity B used in ratio estimation is sometimes called the ratio-of-means estimator. An alternative that has been proposed is the mean of ratios estimator: Let bi = yi/xi for unit i; then the...
A random sample of 10 observations from population A has a sample mean of 152.30 and a sample standard deviation of 1.83. A random sample of 8 observations from population B has a sample standard...
A tank at 400 kPa and 25 8 C contains 10 kg of nitrogen and 5 kg of oxygen. The partial pressure of the nitrogen is nearest: (A) 251 kPa (B) 266 kPa (C) 278 kPa (D) 291 kPa
A six-lane freeway (three lanes in each direction) in a scenic area has a measured free-flow speed of 88.5 km/h. The peak-hour factor is 0.80, and there are 8% large trucks and buses and 6%...
To help control operations, Sisyphus Company developed a standard costing system in its job shop. Data for a recent job follows. REQUIRED Calculate the direct labor price and efficiency variances and...
Head to www.epa.gov/tri, read the TRI Overview, and then find out about the toxic releases for several plants in your zip code, or one nearby. Do you find that the information is reported in an...
Based on the design, briefly discuss the data collection procedures to be used. Be sure to include the area rea of focus and targeted sample as part of these procedures. Develop a hypothetical...
An air conditioning manufacturer produces room air conditioners at plants in Houston, Phoenix, and Memphis. These are sent to regional distributors in Dallas, Atlanta, and Denver. The shipping costs...
The Relational Model and Logical Design (a) In the context of the relational data model, describe the following terms: (i) relation (ii) primary key (iii) foreign key (iv) null ...
You are working on a free-form Packet Tracer challenge activity as seen in Figure 1, you have been given the London Railways network.' The purpose of this EMA question is to build upon each of the...
what is the difference between unitary board system and dual board system in corporate governance ? Explain
Using a suitable substitution, or otherwise, show that: 1. e-cos(x) sin(x)) dx =1- e = 1
Every time a ball bounces it loses 10 percent of its mechanical energy. If the ball is dropped from 3 meters, how high does it go after the 10th bounce? Use the geometric series to find the total...
Suppose 4 J of work are needed to stretch a spring 14 cm from its natural position. How much work is needed to stretch it 20 cm from its natural position?
How to integrate sin (In x) 2 dx
whats the difference between fifo method and weighted average method in equivalent units (process costing)? give an example using both method in coffee shop
You are the new project manager at Garden Decks of Beauty, a local company, for the past 12 years, in the Lexington, Kentucky area. Your first assignment will be for the Melrose family (Todd and...
Discuss whether responsible human resources management should apply different standards for the home company and suppliers, for developed countries and developing countries, and for large companies...
Explain briefly what is meant by electronic data interchange (EDI). How does EDI affect a companys audit trail?
What do you consider to be the most important control a corporation can adopt with respect to capital stock transactions?
The auditors verification of current assets such as cash, securities, and inventories emphasizes observation, inspection, and confirmation to determine the physical existence of these assets. Should...
For the probability distribution in Exercise 14, find the sampling distribution of the sample mean for all samples of size $n=2$. (Hint: The sample means will be the same as given in Figure 3.7,...
Minitab can also be used to create a graphical summary of a given variable. The graphical summary can be found by selecting the Stat menu; under Basic Statistics a. Using Minitab, create a graphical...
Often we may be interested in comparing the amount of variability between two different data sets. This can be done using the sample coefficient of variation $(C O V)$, which is a percentage that...

Given: Population- 500 accounts Sample- 100 accounts Book Value of Sample- $20,000 Population Book Value- $75,000 Audit

Question:

Expert Answer:

d 25000 Explanation The total proje... View the full answer

Principles of Auditing and Other Assurance Services

Students also viewed these accounting questions