AUDITING & ASSURANCE SERVICES CONNECT AC
10th Edition
ISBN: 9781259292057
Author: MESSIER
Publisher: MCG
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Chapter 9, Problem 9.24P
a
To determine
Introduction:
Non-statistical sampling test of control: The difference between non-statistical and statistical sampling is mainly in the selection of
Under the non-statistical sampling method, the sample size is determined based on personal experience and knowledge of the auditor and guidance in audit firm policy. All the major available sample selection methods and other selection methods can be used for selection of sample.
The suggested sample size of the given set using non-statistical sampling formula.
b
To determine
Introduction:
Non-statistical sampling test of control: The difference between non-statistical and statistical sampling is mainly in the selection of sample size and calculating the upper deviation rate.
Under this method, the sample size is determined based on personal experience and knowledge of the auditor and guidance in audit firm policy. All the major available sample selection methods and other selection methods can be used for selection of sample.
The total projected misstatement using ratio projection, and conclusion that G would make concerning the accounts receivable balance.
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Comprehensive Problem: Monetary Unit Sampling. Zachary Mayo is a new staff accountant participating in his first audit engagement. He has been assigned to the Foley Companyengagement and is examining Foley’s accounts receivable. Foley maintains a computerizedledger of its accounts receivable balances, which are recorded at $5,000,000 and comprise5,560 individual customer accounts.Mayo established the following parameters for use in this year’s audit. In so doing, herelied extensively on parameters established in prior audits:∙ Expected misstatement is established at $100,000, which is the average amount of misstatement identified in the past five audits. During the past year, Foley has experienced agreat deal of turnover among its sales processing personnel and has made some relativelylarge sales that present some unusual revenue recognition issues. In addition, accountsreceivable have increased by almost 15 percent from the prior year.∙ The tolerable misstatement is 10 percent of the…
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Chapter 9 Solutions
AUDITING & ASSURANCE SERVICES CONNECT AC
Ch. 9 - Prob. 9.1RQCh. 9 - Prob. 9.2RQCh. 9 - Prob. 9.3RQCh. 9 - Prob. 9.4RQCh. 9 - Prob. 9.5RQCh. 9 - Prob. 9.6RQCh. 9 - Prob. 9.7RQCh. 9 - Prob. 9.8RQCh. 9 - Prob. 9.9RQCh. 9 - Prob. 9.10RQ
Ch. 9 - Prob. 9.11MCQCh. 9 - Prob. 9.12MCQCh. 9 - Prob. 9.13MCQCh. 9 - Prob. 9.14MCQCh. 9 - Prob. 9.15MCQCh. 9 - Prob. 9.16MCQCh. 9 - Prob. 9.17MCQCh. 9 - Prob. 9.18MCQCh. 9 - Prob. 9.19MCQCh. 9 - Prob. 9.20MCQCh. 9 - Prob. 9.21PCh. 9 - Prob. 9.22PCh. 9 - Prob. 9.23PCh. 9 - Prob. 9.24PCh. 9 - Prob. 9.25PCh. 9 - Prob. 9.26P
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