Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

. Indicate the action the auditor should take for the sampling results described below: Additional facts (these are the same for each problem of this

image text in transcribed
. Indicate the action the auditor should take for the sampling results described below: Additional facts (these are the same for each problem of this type unless altered by information given for each case): Book value of the population is $3,000,000 Sampling tolerable misstatement is $50,000. Base your decisions on tolerable misstatement, rather than overall planning materiality. The audit misstatement posting threshold is $10,000 Adjustments are not proposed unless necessary. . It is feasible to expand the sample, if necessary. The projected error is an estimate of the total error in the population, including the actual errors identified. Ignore sampling risk. $25,000 actual misstatements (Pricing change on a renegotiated contract). Client is willing to adjust for actual errors. $60,000 projected misstatement Prepare an adjustment for the actual errors, and place unadjusted errors on the summary of possible adjustments Accept population as fairly stated and take no further action. Place the entire projected error on the summary of possible adjustments. Propose an adjustment for actual errors and perform additional testing, Perform additional testing in a specific area. O Request the client fix the population

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microfinance

Authors: Gianfranco A. Vento, Mario La Torre

4th Edition

1403997896, 9781403997890

More Books

Students also viewed these Accounting questions

Question

evaluate signs to determine their value on communication.

Answered: 1 week ago