The accounting department of the client reports that the balance of Accounts Receivable is $210,000. Using classical variable sampling, the auditor computes an estimated total population value of $216,500 and computed a 95% achieved allowance for sampling risk of +- $8,500. The auditor should conclude that the accounts receivable balance is fairly stated.
The accounting department of the client reports that the balance of Accounts Receivable is $210,000. Using classical variable sampling, the auditor computes an estimated total population value of $216,500 and computed a 95% achieved allowance for sampling risk of +- $8,500. The auditor should conclude that the accounts receivable balance is fairly stated.
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter8: Specialized Audit Tools: Attributes Sampling, Monetary Unit Sampling, And Data Analytics Tools
Section: Chapter Questions
Problem 27RQSC
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Question
![The accounting department of the client reports that the balance of Accounts Receivable is $210,000.
Using classical variable sampling, the auditor computes an estimated total population value of $216,500
and computed a 95% achieved allowance for sampling risk of +- $8,500. The auditor should conclude
that the accounts receivable balance is fairly stated.
on
Select one:
O a. False
Ob. True
I](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F994ba19a-bcd2-456d-9064-01be0d3b1477%2F5383af66-80db-4268-921e-6802ecb37e67%2F1gpkof_processed.png&w=3840&q=75)
Transcribed Image Text:The accounting department of the client reports that the balance of Accounts Receivable is $210,000.
Using classical variable sampling, the auditor computes an estimated total population value of $216,500
and computed a 95% achieved allowance for sampling risk of +- $8,500. The auditor should conclude
that the accounts receivable balance is fairly stated.
on
Select one:
O a. False
Ob. True
I
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