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Concept explainers
Smith, Inc.
Rachel Robertson wishes to use mean-per-unit sampling to evaluate the reasonableness of the book value of the
Required:
- a. Calculate the required
sample size . - b. Assuming the following results:
Book value of items in sample = $149
Average audited value of items in sample = $146
Standard deviation of sample = $28
use the mean-per-unit method to:
- (1) Calculate the point estimate of the account’s audited value.
- (2) Calculate the projected misstatement for the population.
- (3) Calculate the adjusted allowance for sampling risk.
- (4) State the auditors’ conclusion in this situation (accept or reject).
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Chapter 9 Solutions
Principles Of Auditing & Other Assurance Services
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