Use the first two columns of the random number table at the bottom of the page to

choose a sample of five accounts receivable for testing. Find the average book value

and average audit value for the five items sampled.

Account Book Audit

Number Amount Amount

$14911$ $$3,675$ $$3,675$

$24982$ $$8,117$ $$8,117$

$312337$ $$8,183$ $$8,183$

$416430$ $$3,825$ $$3,825$

$516502$ $$5,663$ $$5,663$

$619162$ $$3,829$ $$3,829$

$723970$ $$4,426$ $$4,426$

$830972$ $$6,264$ $$6,264$

$936171$ $$10,808$ $$10,808$

$1039160$ $$1,217$ $$1,217$

$1143997$ $$7,982$ $$7,982$

$1245448$ $$3,119$ $$2,909$

$1351996$ $$9,290$ $$9,290$

$1455564$ $$7,607$ $$7,207$

$1556277$ $$8,018$ $$8,018$

$1659107$ $$6,419$ $$6,019$

$1766473$ $$9,763$ $$9,763$

$1867554$ $$8,136$ $$7,136$

$1978286$ $$10,710$ $$10,710$

$2081269$ $$9,125$ $$9,125$

$2181348$ $$8,446$ $$7,446$

$2288496$ $$8,033$ $$8,033$

$2390720$ $$4,121$ $$4,121$

$2491691$ $$8,259$ $$8,259$

$2593034$ $$10,507$ $$10,507$

$2694405$ $$8,363$ $$8,363$

$2796888$ $$4,692$ $$4,692$

$2897250$ $$1,887$ $$1,887$

$2997447$ $$3,762$ $$2,762$

$3098089$ $$5,754$ $$5,754$

Random Number Book Audit

Table Item Amount Amount

$03025$

$46326$

$51141$

$32983$

$11712$

$14832$

$18735$

$91668$

$28101$

$37483$

$70680$

$53153$

$95218$

Book Average $\_\_\_\_\_\_\_\_\_\_\_\_$ Audit Average $\_\_\_\_\_\_\_\_\_\_\_$

Name $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Basic Classical Sampling

$2$

$1)$ Continued

Using the audit average and book average from the previous page, calculate the projected value

and the projected misstatement using the following three classical sampling methods. The total

book value of the $30$ accounts receivable was $$200,000.$

Book Average $\_\_\_\_\_\_\_\_\_\_\_\_$ Audit Average $\_\_\_\_\_\_\_\_\_\_\_$

a$.$ Mean$-$Per$-$Unit Estimation

Projected Value $$\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Projected Misstatement $$\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ Overstated Understated

Audit

Average x

Number of

Items in

Population $=$ Projected Value

x $=$

Total Book Value

Projected Value

Projected Misstatement

b$.$ Ratio Estimation

Projected Value $$\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Projected Misstatement $$\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ Overstated Understated

Audit Average

x

Total Book

Value $=$ Projected Value Book Average

x $=$

Total Book Value

Projected Value

Projected Misstatement

Name $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Basic Classical Sampling

$3$

$1)$ Continued

Book Average $\_\_\_\_\_\_\_\_\_\_\_\_$ Audit Average $\_\_\_\_\_\_\_\_\_\_\_$

c$.$ Difference Estimation

Projected Value $$\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Projected Misstatement $$\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ Overstated Understated

Audit Average

$-$ Book Average

Difference x

Number of

Items in

Population $=$

Projected

Misstatement

x $=$

Total Book Value

Projected Value

Projected Misstatement

d$.$ All three classical sampling methods will estimate the projected value for the population.

A$.$ True

B$.$ False