You are auditing the financial statements of Blue Pty Ltd, a whitegoodswholesaler. You ask the audit junior

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You are auditing the financial statements of Blue Pty Ltd, a whitegoodswholesaler. You ask the audit junior to assist you to test whether or not purchasesof equipment are fairly stated. You tell him that you will use dollar unit sampling.Your assistant provides you with the information in the table below.

Number of purchases 6,000

Amount of purchases $6,000,000

Sample size60

Dollar value of sample$600,000

Materiality allocated $60,000

Error found in the sample $600

REQUIRED: Draw a conclusion, on the basis of the information provided, as towhether or not purchases are fairly stated. Explain your answer and show allcalculations.

Posted Date: Nov 18, 2021 06:53 AM

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You are auditing the financial statements of Blue Pty Ltd, a whitegoodswholesaler. You ask the audit junior

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Objective of checking Purchase details during the audit of financial stat... View the full answer

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