In the audit of Price Seed Company for the year ended September 30, the auditor set a
Question:
a. Calculate the upper and lower misstatement bounds on the basis of the client misstatements in the sample.
b. Is the population acceptable as stated? If not, what options are available to the auditor at this point? Which option should the auditor select?Explain.
Transcribed Image Text:
Accounts Receivable per Records Accounts Receivable per Confirmation Follow-up Comments by Auditor 1. $2,728.00 2,498.00 Pricig error on two invoices. 2. $5,125.00 3. $3,890.00 190.00 erchandise returned 9/30 and counted in inventory; credit Customer mailed check 9/26; company received check 10/3. was issued 10/6. 4. S 791.00 5. 548.00 1,03700Goods were shipped 9/28; sale was recorded on 10/6. 6. $3,15.00 3,190.00 Pricing error on a credit memorandum 7. $1,540.00 815.00 Ftingerror on an invoice. Goods were shipped on 9/29; customer received goods 10/3; sale was recorded on 9/30
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a The differences that were uncovered include only five misstatements rather than seven Items 2 and 7 are not misstatements but only timing difference...View the full answer
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Related Book For
Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
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