of Sluuenl #4 (Udine! Q4- I. TEST THE SAMPLE & EVALUATE THE RESULTS: You send a total of 44 confirmations: 43 confirmations as determined by the Non-stat calculation above and 1 that was judgmentally selected because it was greater than performance materiality. A selection of the confirmation results for Air BNB Co is shown below. Confirmation Sample Type Recorded Amount Evaluation Number Customer Name Balance Confirmed by Customer Results Confirmation reply not Representative sample Representative received from customer, but selected haphazardly by non- $10,000 Corporation alternative procedures statistical sampling. performed successfully. Representative sample 2 selected haphazardly by non-Illustration LLC $18,000 $18,000 Answer statistical sampling. below. Representative sample sale selected haphazardly by non- $20,000 $19,800 Partnership statistical sampling Specimen Inc. (a Judgementally Selected $4,000,000 $3,950,000 related party) Q4-ii. On the basis of the accounts receivable confirmation results received (as presented above), what are the conclusions for each of the sample items selected? Confirmation Number | Evaluation of Results: (A)Fail/Exception; (B)Pass/No Exception; or (C) Cannot be Determined [Put only 1 letter below) 1 (EX: A) M Q4-jji. Should any errors be extrapolated over the entire population given that the only identified error relates to Confirmation 3 and Confirmation 4? Explain why briefly (1-2 sentences). + Confirm # (only 3 Extrapolate Error: [(A) Yes, (B) No ]- (Explain why briefly.) & 4) 3 (EX: A- Because XXX.) B Q4-iv. Assume that the following final results of the Sample (See table below), determine whether (a)there is a material misstatement, or (b) whether the sample passes; & Explain why i briefly (1-2 sentences): ANSWER: SEX: (a) - because XXX. Strata Bases of Strata Recorded Balance Audited amount (based on extrapolation of confirmation results) Difference $40,000,000 $39,075,000 $925,000 Representative Homogeneous Population High Dollar Value Items TOTAL FULL POPULATION $4,000,000 $44,000,000 $3,950,000 $43,025,000 $50,000 $975,000 W of Sluuenl #4 (Udine! Q4- I. TEST THE SAMPLE & EVALUATE THE RESULTS: You send a total of 44 confirmations: 43 confirmations as determined by the Non-stat calculation above and 1 that was judgmentally selected because it was greater than performance materiality. A selection of the confirmation results for Air BNB Co is shown below. Confirmation Sample Type Recorded Amount Evaluation Number Customer Name Balance Confirmed by Customer Results Confirmation reply not Representative sample Representative received from customer, but selected haphazardly by non- $10,000 Corporation alternative procedures statistical sampling. performed successfully. Representative sample 2 selected haphazardly by non-Illustration LLC $18,000 $18,000 Answer statistical sampling. below. Representative sample sale selected haphazardly by non- $20,000 $19,800 Partnership statistical sampling Specimen Inc. (a Judgementally Selected $4,000,000 $3,950,000 related party) Q4-ii. On the basis of the accounts receivable confirmation results received (as presented above), what are the conclusions for each of the sample items selected? Confirmation Number | Evaluation of Results: (A)Fail/Exception; (B)Pass/No Exception; or (C) Cannot be Determined [Put only 1 letter below) 1 (EX: A) M Q4-jji. Should any errors be extrapolated over the entire population given that the only identified error relates to Confirmation 3 and Confirmation 4? Explain why briefly (1-2 sentences). + Confirm # (only 3 Extrapolate Error: [(A) Yes, (B) No ]- (Explain why briefly.) & 4) 3 (EX: A- Because XXX.) B Q4-iv. Assume that the following final results of the Sample (See table below), determine whether (a)there is a material misstatement, or (b) whether the sample passes; & Explain why i briefly (1-2 sentences): ANSWER: SEX: (a) - because XXX. Strata Bases of Strata Recorded Balance Audited amount (based on extrapolation of confirmation results) Difference $40,000,000 $39,075,000 $925,000 Representative Homogeneous Population High Dollar Value Items TOTAL FULL POPULATION $4,000,000 $44,000,000 $3,950,000 $43,025,000 $50,000 $975,000 W
