in the audit o Pnco Cu c Company o he year onde Septomoor 0 he differences uncovererd in the ronfimmatian ne a d or sot a t abl ms ate ont o $15 000 at an A IA O 15% A PP sam c o 100 was s oct d from an accounts oco able popula ion had a ccordod balance o S2 CO 000. The olo ng table shows Ell (Click the ican t view the misslateens) (Click the icon to vicw the confidenoc factors for monctary unit sample sze cvaluation table ) Data Tsble a Cakulate the upper misslalerment bourd on the basis of he client risstalerments in the sample b. s the population acceptable as stated? if not, what optione are avalable to the audtor at this point? Wich opion should the auditor el Explan. Requirement a. Cak:ulatetheupper misslalemert baurd an the besis af their istalemenls in the sarmple par Records Confirmation 1. $ 2,230.00 s 2. $ 6475.0 3. 3,580.00 Follow-up Comments by Auditor Bogin by identfy ng which differences uncovered in the confirmation process are misstanoments The tainting progortioss decimals aurnded ha three derimal plraces, X XXx) Calculate the mistatomont amount and therbng propo on if 10.00 Picing emor on two invcices. Cusimr maileed chreck 28, camaryr received chek 10/3 Merchandise retumed 30 and counted in inventery, credr Factual lainting ,5 was issuod 106 ltern Misstatemen? Recorded Aourt 4 88000 5. S 520.00 810.00 Foxnlirg E D iwaice G0ods were shipped 28; customer received goods on 102 sale was recordod on 9/28 3. 6. S 3,480.00 . 1,360.00 Goods were shipped on 929; customer received goods 103 sale was erorded on 9/30 Prnt Done Curi lele lhe lable below lu oumpule ite u p '1iss ale" ent bound Degin by cu dling ihe annurts needed to calcuale he oer stalenleil bound and II en calculate xxxx. Eter the incremental change in condence factor to two decimal places, XxX. Round al other amounts to the nearest whcle dolars. Leave unused cells blank.) Prajecterd In the adt Pnce Ou Company for th year ended Sep he differences uncovered in the confialion n ber 30 th in r seta i k most ment f $1500 at an ARIA 5% A PPS samp 100 w eerte oman a courts n er ble papulationma n d r nm nalance $2100000 The low ng t la sh E(Cckthe con to view the misstatements.) rclick the con to view the conhdence tactors tor monetary unt sample size evaluabon table.) Referemoe a. Calculate the upper misstatement bound on the basis of the client missiatements in the sample. b. s thc population accoptablc as statod? if rot, wher oprions arc availablo to the aucitor ar this point? Which option shoud tho auditor sclect? Explain Confidence Factors for Monetary Unit Sample Size Evaluation Risk of Incorrect Acceptance Number of Plus Incremenal Samping Projertrd Change in 1.05 2.22 3.35 4.46 5.55 3.00 2.31 1.90 1,61 3.00 4.28 5.52 5,73 1,39 2.70 3.93 1.21 0.70 1.58 2.68 Interval Mtaement Contidence Factor mpling Risk 6.30 7.76 9.16 5,33 4.73 3.62 8,00 9.28 10,54 11.78 3,00 14.21 7.27 5.90 7.01 8.12 9.21 10,31 11.39 12.47 7.43 11.85 3.15 14.44 15.71 16.97 9.71 9,08 8.56 7.72 8.79 9,85 10.92 11.98 7.67 11.38 12.52 13.66 10,81 11.92 13.02 Add basic precision 3.25 14.42 lpper misstatement baund Requirement b. Isheppullion acceplable as slated? If nol, whal aptions are availabe o teudr at his point? Which option sheuld the audlar select? Explair A. The op aion is accettable as staled because he uppe misstalement bound exceed to er able misstatement n this situation the auditor would no need to lake rthe action xedls. In this situalicen, the audtan asof epliars Thesbeeicial pplion woukd est kely be lo incresase Ihe tae abi mssiateen st beneficial option wealkd mcst lkrly be to increase the sarple sire to abtain a better estimate of the adjustr nen s less lien lulea le rmissialer iverl O D. I he populaton is not acceptable as stated because the upper misstate d exceeds tolerable misstatememt. In this sruation, the audtor has a number or options. The most benehcial opbon wculd mcst Ikely be to select a new sample and pertorm the tests again. in the audit o Pnco Cu c Company o he year onde Septomoor 0 he differences uncovererd in the ronfimmatian ne a d or sot a t abl ms ate ont o $15 000 at an A IA O 15% A PP sam c o 100 was s oct d from an accounts oco able popula ion had a ccordod balance o S2 CO 000. The olo ng table shows Ell (Click the ican t view the misslateens) (Click the icon to vicw the confidenoc factors for monctary unit sample sze cvaluation table ) Data Tsble a Cakulate the upper misslalerment bourd on the basis of he client risstalerments in the sample b. s the population acceptable as stated? if not, what optione are avalable to the audtor at this point? Wich opion should the auditor el Explan. Requirement a. Cak:ulatetheupper misslalemert baurd an the besis af their istalemenls in the sarmple par Records Confirmation 1. $ 2,230.00 s 2. $ 6475.0 3. 3,580.00 Follow-up Comments by Auditor Bogin by identfy ng which differences uncovered in the confirmation process are misstanoments The tainting progortioss decimals aurnded ha three derimal plraces, X XXx) Calculate the mistatomont amount and therbng propo on if 10.00 Picing emor on two invcices. Cusimr maileed chreck 28, camaryr received chek 10/3 Merchandise retumed 30 and counted in inventery, credr Factual lainting ,5 was issuod 106 ltern Misstatemen? Recorded Aourt 4 88000 5. S 520.00 810.00 Foxnlirg E D iwaice G0ods were shipped 28; customer received goods on 102 sale was recordod on 9/28 3. 6. S 3,480.00 . 1,360.00 Goods were shipped on 929; customer received goods 103 sale was erorded on 9/30 Prnt Done Curi lele lhe lable below lu oumpule ite u p '1iss ale" ent bound Degin by cu dling ihe annurts needed to calcuale he oer stalenleil bound and II en calculate xxxx. Eter the incremental change in condence factor to two decimal places, XxX. Round al other amounts to the nearest whcle dolars. Leave unused cells blank.) Prajecterd In the adt Pnce Ou Company for th year ended Sep he differences uncovered in the confialion n ber 30 th in r seta i k most ment f $1500 at an ARIA 5% A PPS samp 100 w eerte oman a courts n er ble papulationma n d r nm nalance $2100000 The low ng t la sh E(Cckthe con to view the misstatements.) rclick the con to view the conhdence tactors tor monetary unt sample size evaluabon table.) Referemoe a. Calculate the upper misstatement bound on the basis of the client missiatements in the sample. b. s thc population accoptablc as statod? if rot, wher oprions arc availablo to the aucitor ar this point? Which option shoud tho auditor sclect? Explain Confidence Factors for Monetary Unit Sample Size Evaluation Risk of Incorrect Acceptance Number of Plus Incremenal Samping Projertrd Change in 1.05 2.22 3.35 4.46 5.55 3.00 2.31 1.90 1,61 3.00 4.28 5.52 5,73 1,39 2.70 3.93 1.21 0.70 1.58 2.68 Interval Mtaement Contidence Factor mpling Risk 6.30 7.76 9.16 5,33 4.73 3.62 8,00 9.28 10,54 11.78 3,00 14.21 7.27 5.90 7.01 8.12 9.21 10,31 11.39 12.47 7.43 11.85 3.15 14.44 15.71 16.97 9.71 9,08 8.56 7.72 8.79 9,85 10.92 11.98 7.67 11.38 12.52 13.66 10,81 11.92 13.02 Add basic precision 3.25 14.42 lpper misstatement baund Requirement b. Isheppullion acceplable as slated? If nol, whal aptions are availabe o teudr at his point? Which option sheuld the audlar select? Explair A. The op aion is accettable as staled because he uppe misstalement bound exceed to er able misstatement n this situation the auditor would no need to lake rthe action xedls. In this situalicen, the audtan asof epliars Thesbeeicial pplion woukd est kely be lo incresase Ihe tae abi mssiateen st beneficial option wealkd mcst lkrly be to increase the sarple sire to abtain a better estimate of the adjustr nen s less lien lulea le rmissialer iverl O D. I he populaton is not acceptable as stated because the upper misstate d exceeds tolerable misstatememt. In this sruation, the audtor has a number or options. The most benehcial opbon wculd mcst Ikely be to select a new sample and pertorm the tests again
