Audit Sampling $-$ Part $1($February $2023)$

Duffney, CPA will now apply his testing $($sample of $100$ AR accounts$)$ to the Universe $($AR $=$$$3,000,000)$ to make an opinion on whether Will$-$Mart's AR balance of $$3,000,000$ is fairly stated using the three methods. $1-$ Mean Per Unit, $2-$ Ratio Estimation & $3-$ Difference Estimation

Mean Per Unit $($formula$)$

Pull amounts from chart listed on page $4$

$\backslash$table$[[\backslash$table$[[$Audited$],[$Mean$]],$x$,\backslash$table$[[$Total Accounts In$],[$The Universe$]],=,\backslash$table$[[$Auditor Estimated$],[$Value of account$]]]]$

Using the Mean per Unit method, the auditor applies the error rate from the audit tested sample to the universe $($AR account $=$$$3,000,000)$ and determines the client's AR account should be $$2,970,000$

Using the Mean per Unit method, the auditor applies the error rate from the audit tested sample to the universe $($AR account $=$$$3,000,000)$ and determines the client's AR account is overstated by $$2,970,000)$

Projected Misstatement $=$ client's account overstated by $$30,000$