Question: An auditor is determining the appropriate sample size for testing inventory valuation using dollar unit sampling. The population has 2,620 inventory items valued at ($12,625,000.)

An auditor is determining the appropriate sample size for testing inventory valuation using dollar unit sampling. The population has 2,620 inventory items valued at $$12,625,000.$ The allowable understatement or overstatement is $$500,000$ at a 90% confidence level. No errors are expected in the population. Calculate the preliminary sample size u§ing a 100% average error assumption.

Step by Step Solution

★★★★★

3.33 Rating (156 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Statistical Sampling To Auditing Questions!

Assume that in question 9-12, the population item that included error 1 was included in the sample twice as two separate dollar units. How should the auditor treat this item? Question 9-12: Instead...

Instead of no errors in question 9-9, assume that the following three errors were found: Calculate error bounds for the population, using both the attributes tables and the shortcut method. Draw...

No errors were uncovered in the sample of 100 items for question 9-6. Calculate the error bounds and draw audit conclusions based upon the results. How would the error bounds be affected if you used...

An auditor is determining the appropriate sample size for testing inventory valuation using MUS. The population has 4 comma 3304,330 inventory items valued at $ 12 comma 500 comma 000$12,500,000. The...

Using MUS, an auditor determined the preliminary sample size for testing inventory valuation to be 64 (using a 100% average misstatement assumption). The population has 2,900 inventory items valued...

I would like assistance with assignment 3 and 4 on the attached document I have been struggling with the subject and its my last AUI4863/102/0/2016 Tutorial letter 102/0/2016 ADVANCED INTERNAL AUDIT...

There are four parts to this assignment, and this should be completed and submitted in Excel as four different worksheets in one Excel file submitted to dropbox in Blackboard. 1. Worksheet #1: Random...

Using the excel template, Calculate various ratios to evaluate Target's financial position, operational efficiency, profitability, and its competitor, Target, for the fiscal years ending 2018, 2019,...

Assume that you are preparing to confirm accounts receivable at December 31, 2022, which is one month prior to the fiscal year-end of January 31, 2023. The book value of gross accounts receivable is...

I need to finish assignment Assignment 6 WPs 21-1, 21-2, 21-3, 21-5, 21-6, 21-17, 21-18, 21-19, 21-20, 21-21 Assignment 7 WPs 30-1, 30-2, 30-4, 30-5, 30-21, 30-22, 30-23, 30-24 Assignment 8 WPs 20-1,...

A population consists of these scores: 2, 3, 6, 8, 11, 18. a. Find and . b. List all samples of size n = 2 that are obtained without replacement. c. Find the population of all values of x by finding...

If it is the current through the body that determines how serious a shock will be, why do we see warnings of high voltage rather than high current near electrical equipment?

To analyze each project based on the cash payback period, we need to determine the time it takes for each project to recover its initial investment from its net cash flows. The cash payback period is...

How often do I see my work as a contribution to something greater than me?

20 The property values for three homes selected at random in the Forest Ridge subdivision are (in thousands of dollars) 110. 120. 130 The property values for two homes selected at random in the...

19. A study of bulimia among college women (J. Kern and T. Hastings, Journal of Clini- cal Psychology, Vol. 51, 1995. p. 499) considered the effect of childhood sexual abuse on vanous components of a...

18. Newsweek magazine (September 19. 1983) reported results of a poll to investigate wheth- er there was a difference between the percentage of women and the percentage of men who approved of the way...

The three types of Accelerated Death Benefits are Terminal Illness, Dread Disease, and Long Term Care Insurance. Come up with at least one advantage and disadvantage (or concern) of each? Consider...

Property, plant, and equipment (plant assets) represent a material part of the total assets for most companies. Accounting for acquiring and using such assets is an important part of the financial...

What js tbr minimum absolute error and thr minimum % relative error for a 0 . 5 0 M NaOH