PRIN.OF AUDITING+OTHER...(LL) >CUSTOM<
PRIN.OF AUDITING+OTHER...(LL) >CUSTOM<
21st Edition
ISBN: 9781260824308
Author: WHITTINGTON
Publisher: MCGRAW-HILL HIGHER EDUCATION
Question
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Chapter 9, Problem 44P

a.

To determine

Explain four areas where CPAs may provide judgement in planning a statistical test of controls.

b.

To determine

Explain the steps to be taken by the auditor in case of unacceptable deviation rate.

c.

To determine

Suggest four sampling techniques for selecting the sample size from the population.

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Given:Population- 500 accountsSample- 100 accountsBook Value of Sample- $20,000Population Book Value- $75,000Audit Value of Sample- $18,000Tolerable error- $8,000Using difference estimation, the projected population value is a. $83,000b. $90,000C. $67,000d. $65,000e. $85,000 is the correct answer c or d
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