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You are completing your audit of LTC Ltd, an importer of cell phones from Taiwan. Total sales this year were $54,000,000. The results of your audit work on inventory are summarized in the following table:   Description # of SKU’s $ Value Population 120 $5,200,000 Sample 30 $2,080,000 Errors found 5    $177,000   Required Using the monetary unit method, calculate the projected inventory error, and, assess it against materiality.

You are completing your audit of LTC Ltd, an importer of cell phones from Taiwan. Total sales this year were $54,000,000. The results of your audit work on inventory are summarized in the following table:   Description # of SKU’s $ Value Population 120 $5,200,000 Sample 30 $2,080,000 Errors found 5    $177,000   Required Using the monetary unit method, calculate the projected inventory error, and, assess it against materiality.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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You are completing your audit of LTC Ltd, an importer of cell phones from Taiwan. Total sales this year were $54,000,000. The results of your audit work on inventory are summarized in the following table:

 

Description

# of SKU’s

$ Value

Population

120

$5,200,000

Sample

30

$2,080,000

Errors found

5

   $177,000

 

Required

Using the monetary unit method, calculate the projected inventory error, and, assess it against materiality.

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