Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN: 9781337619455
Author: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher: Cengage Learning
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Question
Chapter 8, Problem 29RQSC
a.
To determine
Introduction: Audit is the activity performed by the professional known as the auditor. In audit the validity and reliability of the information given by the company is correct of not. True and fair view of the books of accounts is shown in the balance sheet of the company and annually present to the shareholder and boards of director of the company.
The statistical conclusion if no misstatements are found in the sample and whether its account balance acceptable.
b.
To determine
Introduction: Audit is the activity performed by the professional known as the auditor. In audit the validity and reliability of the information given by the company is correct of not. True and fair view of the books of accounts is shown in the balance sheet of the company and annually present to the shareholder and boards of director of the company.
Compute the total estimated misstatements.
c.
To determine
Introduction: Audit is the activity performed by the professional known as the auditor. In audit the validity and reliability of the information given by the company is correct of not. True and fair view of the books of accounts is shown in the balance sheet of the company and annually present to the shareholder and boards of director of the company.
The results indicates the account balance as acceptable.
d.
To determine
Introduction: Audit is the activity performed by the professional known as the auditor. In audit the validity and reliability of the information given by the company is correct of not. True and fair view of the books of accounts is shown in the balance sheet of the company and annually present to the shareholder and boards of director of the company.
If results are not acceptable other course of action available to the auditor.
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Students have asked these similar questions
The following are auditor judgments and attributes sampling results for six populations. Assume large population sizes.
1
2
3
4
5
6
EPER (in percent)
2
0.5
1
0
2
5
TER (in percent)
6
4
20
3
8
10
ARO (in percent)
10
5
10
5
5
10
Actual sample size
100
100
20
100
60
60
Actual number of exceptions in the sample
2
3
1
1
1
5
For each population, did the auditor select a smaller sample size than is indicated by using the attributes sampling tables in Table 15-8(p. 519) for determining sample size? What are the implications of selecting either a larger or smaller sample size than those determined using the tables?
Calculate the SER and CUER for each population.
For which of the six populations should the sample results be considered unacceptable? What options are available to the auditor?
Why is analysis of the exceptions necessary even when the populations are considered acceptable?
For…
If the UML or Projected Misstatement in a sampling is $8,000, while the tolerable misstatement is $9,000, what would an auditor likely conclude?
A) Since the UML or Projected Misstatement is less than the tolerable misstatement, the account is not materially misstated.
B) Since the UML or Projected Misstatement is less than the tolerable misstatement, the account is misstated.
C) The analysis has been improperly performed since the UML or Projected Misstatement is unequal to the tolerable misstatement
Assume that an account with a recorded balance of $5,000 has an audited value of $3,000. By using monetary unit sampling, if the sampling interval is $1,500, the projected misstatement would bea. $600.b. $900.c. $2,000.d. $3,000.
Chapter 8 Solutions
Auditing: A Risk Based-Approach (MindTap Course List)
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