EP AUDITING+ASSURANCE...-MYACCT.LAB
16th Edition
ISBN: 9780134148656
Author: ARENS
Publisher: PEARSON CO
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Chapter 17, Problem 20.3MCQ
To determine
Explain the decision that is to be taken for the situation given.
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You are testing your client's allowance, recorded at $1,500,000, with a monetay unit sample. The
following results are at a 2-sided confidence level of 90%.
Lower confidence limit
$1,200,000 uncollectible
Upper confidence limit
$1,900,000 uncollectible
Max. tol. misstatement:
$500,000
The client already has a previously recognized a $1.500.000 allowance for uncollectibles
recorded.
Which of the following would be a materially correct DR or CR adjustment amount?
a.
DR Allowance $500,000
CR Allowance $500,000
No adjustment needed.
CR Allowance
$1,550,000
b.
d:
A financial analyzer believes that the proportion of investors who are risk-averse (that is, try to avoid risk in their investment decisions) is at least 0.7. A sur-vey of 32 investors found that 20 of them were risk-averse. Formulate a one-sample hypothesis solution for a proportion to asses this belief.
(Answer on Excel)
2) What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
3) What was the average risk premium? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Chapter 17 Solutions
EP AUDITING+ASSURANCE...-MYACCT.LAB
Ch. 17 - Prob. 1RQCh. 17 - Prob. 2RQCh. 17 - Prob. 3RQCh. 17 - Prob. 4RQCh. 17 - Prob. 5RQCh. 17 - Prob. 6RQCh. 17 - Prob. 7RQCh. 17 - Prob. 8RQCh. 17 - Prob. 9RQCh. 17 - Prob. 10RQ
Ch. 17 - Prob. 11RQCh. 17 - Prob. 12RQCh. 17 - Prob. 13RQCh. 17 - Prob. 14RQCh. 17 - Prob. 15RQCh. 17 - Prob. 16RQCh. 17 - Prob. 17RQCh. 17 - Prob. 18RQCh. 17 - Prob. 19.1MCQCh. 17 - Prob. 19.3MCQCh. 17 - Prob. 19.2MCQCh. 17 - Prob. 20.1MCQCh. 17 - Prob. 20.2MCQCh. 17 - Prob. 20.3MCQCh. 17 - Prob. 21.1MCQCh. 17 - Prob. 21.3MCQCh. 17 - Prob. 21.2MCQCh. 17 - Prob. 22.1MCQCh. 17 - Prob. 22.2MCQCh. 17 - Prob. 22.3MCQCh. 17 - Prob. 23DQPCh. 17 - Prob. 24DQPCh. 17 - Prob. 25DQPCh. 17 - Prob. 26DQPCh. 17 - Prob. 27DQPCh. 17 - Prob. 28DQPCh. 17 - Prob. 29DQPCh. 17 - Prob. 30DQPCh. 17 - Prob. 31CCh. 17 - Prob. 32C
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