1. Match the population from which an auditor would draw a sample to the relevant assertion for Accounts Receivable

List...

• Population for sampling should be all sales orders/invoices sent to customers.Auditor should trace the sales order/invoice to the AR balance completeness
• Population for sampling should be all customers for which there is an accounts receivable balance. Auditor will vouch the balance included in AR to the confirmation document. Existence

Existence....

Completeness....

2 Compute the estimated population deviation rate for the following scenario:

The auditor tests an account balance that totals $450,000. In doing so, his sample consists of 40 items whose balances total $195,000 and he finds $22,900 in misstatements.

• 5.09%
• 11.74%
• 0.13%
• 43.33%

3 What are the characteristics that make audit confirmations high quality evidence? (select all that apply)

• They are sent to a statistically determined sample
• They are from an independent source
• They are received directly by the auditor from the source
• They are prepared based on the actual financial statement balance

Please support your answers with explanation