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
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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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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