Prepare tables like the one in Exhibit DC 10B-2 under different assumptions for the three combinations given

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Prepare tables like the one in Exhibit DC 10B-2 under different assumptions for the three combinations given below. Calculate monetary-unit sample sizes using the Poisson risk factors for a dollar value of the balance of $300,000 and a tolerable misstatement of $10,000. Assume zero expected misstatement. (These are the recorded amount and tolerable misstatement underlying Exhibit DC 10B-2.) Round your RIAs to two decimal places to use the Poisson risk factor tables.

1. AR = 0.10, IR = 1.00, AP = 1.00

2. AR = 0.05, IR = 0.50, AP = 1.00

3. AR = 0.05, IR = 1.00, AP = 0.50


Required:

Explain the differences or similarities among the different or same sample sizes produced by your calculations.

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Auditing An International Approach

ISBN: 978-1259087462

7th edition

Authors: Wally J. Smieliauskas, Kathryn Bewley

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