1: The auditor decided to audit on revenue,and the population size for the revenue is =  540000 $, and the sample size is= 260000$

Required:

The inspection period?

The starting number of the first bill?

Fourth invoice number?

2: if the auditor have the following

information :

Tolerable misstatement for cash = 4000

Tolerable misstatement for A/R = 12000

Tolerable misstatement for inventory = 60000

Sampling error for cash = 0

Sampling error for A/R = 500

Sampling error for inventory = 8000

Direct projection for cash= 1000

Direct projection for A/R= 700

Net misstatement in inventory sample= 3500

Total sample of inventory= 20000

Total population of inventory= 100000

Preliminary materiality = 45000

High materiality = 90000

Required :
What is the direct projection for inventory?

Is the misstatement material or  immaterial?

What is the suitable report should the  auditor issue in this case?

Answer rating: 100% (QA)

Q1 1 The insection period is 20769 years 2 The starting n... View the full answer