Problem 2 (58 pts) Take the accounts receivable population shown on the next page and perform the following (using sampling without replacement and an estimate of the population standard deviation of the recorded amounts of $30) a. Determine the sample size for a classical statistical sample using mean estimation. Assume a tolerable misstatement of $2,000, a risk of incorrect rejection of 20%, and a risk of incorrect acceptance of 10% (12 pts) b. Take the sample using random sampling Le, use either a random number table or a random number generator (can get off the web) In your answer please describe how you selected the sample, how you got the random numbers and include the table you used. (8 pts) c. Assume you have audited your sample and the recorded and audited amounts are the same except for the following: (8 pts) Account number Recorded amount Diff 1 3 16 20 24 27 41 56 88 218 200 196 211 190 224 187 190 202 Audited amount 118 130 190 0 150 37 178 290 0 100 70 6 211 40 187 9 -100 202 References Mailings Review are the same except for the following: (8 pts) View Help Account number Recorded amount Diff 1 3 16 20 24 27 41 56 68 218 200 196 211 190 224 187 190 202 Audited amount 118 130 190 0 150 37 178 290 0 100 70 6 211 40 187 9 -100 202 69 82 117 126 129 143 199 207 178 200 173 176 198 183 407 187 222 373 180 98 189 - 200 - 9 -22 -200 -4 100 -6 d. Calculate an estimate of the population audited value and also calculate the projected misstatement (10 pts) e. Calculate an achieved allowance for sampling risk (10 pts) f. Indicate whether the sampling results are acceptable or unacceptable. Explain Drone SET 82 -6 Help 41 187 178 56 9 190 68 290 202 -100 0 202 69 207 407 - 200 178 117 187 9 200 222 126 -22 173 373 129 -200 176 180 -4 143 198 98 100 199 183 189 d. Calculate an estimate of the population audited value and also calculate the projected misstatement (10 pts) e. Calculate an achieved allowance for sampling risk (10 pts) f. Indicate whether the sampling results are acceptable or unacceptable. Explain your reason. (10 pts) g. (Extra credit) Did you incorrectly or correctly accept the population or did you correctly or incorrectly reject the population and why? You need to clearly explain your answer. (10 points) ACCOUNTS RECEIVABLE POPULATION AIC Amount A/C# Amount A/C# Amount A/C Amount # # 1 218 51 205 101 220 151 206 2 209 52 220 102 221 152 207 Fan Review your proper View Help your answer. (10 points) Rony TV ACCOUNTS RECEIVABLE POPULATION AIC Amount A/C# Amount # A/C# Amount AJC Amount 1 218 51 # 205 101 2 220 209 52 151 220 206 3 102 200 221 53 152 207 198 103 224 4 196 153 208 54 169 104 5 226 170 154 55 209 234 105 6 228 6 155 178 210 56 190 106 7 230 156 211 180 57 191 107 232 8 157 212 199 58 180 108 9 234 158 213 201 59 181 109 235 10 159 214 230 60 182 110 210 160 11 215 228 61 209 111 190 161 216 12 212 62 208 112 185 162 13 197 63 214 113 220 163 171 14 190 64 188 114 215 164 240 15 202 65 193 115 210 165 235 16 196 66 196 116 205 166 234 17 233 67 194 117 200 167 190 18 181 68 202 118 195 168 182 19 196 69 207 119 190 169 203 20 211 70 206 120 185 170 171 158 to search o @ DRAW 20 21 22 23 24 25 211 210 208 186 190 191 70 71 72 73 74 75 206 184 182 178 175 209 120 121 122 123 124 125 185 185 180 175 170 172 170 171 172 173 174 175 171 220 198 233 202 197 26 183 27 224 28 226 29 215 30 208 31 200 32 193 33 183 34 203 35 181 36 228 37 230 38 232 39 188 40 199 41 187 42 212 43 230 44 201 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 213 215 231 232 175 176 178 180 182 185 188 189 191 193 195 197 199 202 204 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 173 174 175 176 177 178 179 180 118 180 191 192 193 194 195 196 197 198 199 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 196 102 198 195 206 206 205 205 174 174 180 179 188 178 196 206 216 226 236 94 e here to search 77 78 79 80 174 175 176 81 27 28 29 30 31 32 33 34 35 36 37 38 39 40 205 224 226 215 208 200 193 183 203 181 228 230 232 188 199 187 212 230 201 214 215 189 178 234 204 82 83 84 85 86 87 88 89 90 91 92 93 215 231 232 175 176 178 180 182 185 188 189 191 193 195 197 199 202 204 206 208 210 212 215 218 TEO 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 TOU 177 102 178 198 179 195 180 206 181 206 182 205 183 184 174 185 174 186 180 187 179 188 188 189 178 190 196 191 206 192 216 193 226 194 236 195 196 198 186 197 185 198 184 199 183 200 186 Total 539816.00 177 178 179 180 118 180 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 41 94 42 43 44 45 46 47 48 49 50 95 96 97 98 99 100 to search O Problem 2 (58 pts) Take the accounts receivable population shown on the next page and perform the following (using sampling without replacement and an estimate of the population standard deviation of the recorded amounts of $30) a. Determine the sample size for a classical statistical sample using mean estimation. Assume a tolerable misstatement of $2,000, a risk of incorrect rejection of 20%, and a risk of incorrect acceptance of 10% (12 pts) b. Take the sample using random sampling Le, use either a random number table or a random number generator (can get off the web) In your answer please describe how you selected the sample, how you got the random numbers and include the table you used. (8 pts) c. Assume you have audited your sample and the recorded and audited amounts are the same except for the following: (8 pts) Account number Recorded amount Diff 1 3 16 20 24 27 41 56 88 218 200 196 211 190 224 187 190 202 Audited amount 118 130 190 0 150 37 178 290 0 100 70 6 211 40 187 9 -100 202 References Mailings Review are the same except for the following: (8 pts) View Help Account number Recorded amount Diff 1 3 16 20 24 27 41 56 68 218 200 196 211 190 224 187 190 202 Audited amount 118 130 190 0 150 37 178 290 0 100 70 6 211 40 187 9 -100 202 69 82 117 126 129 143 199 207 178 200 173 176 198 183 407 187 222 373 180 98 189 - 200 - 9 -22 -200 -4 100 -6 d. Calculate an estimate of the population audited value and also calculate the projected misstatement (10 pts) e. Calculate an achieved allowance for sampling risk (10 pts) f. Indicate whether the sampling results are acceptable or unacceptable. Explain Drone SET 82 -6 Help 41 187 178 56 9 190 68 290 202 -100 0 202 69 207 407 - 200 178 117 187 9 200 222 126 -22 173 373 129 -200 176 180 -4 143 198 98 100 199 183 189 d. Calculate an estimate of the population audited value and also calculate the projected misstatement (10 pts) e. Calculate an achieved allowance for sampling risk (10 pts) f. Indicate whether the sampling results are acceptable or unacceptable. Explain your reason. (10 pts) g. (Extra credit) Did you incorrectly or correctly accept the population or did you correctly or incorrectly reject the population and why? You need to clearly explain your answer. (10 points) ACCOUNTS RECEIVABLE POPULATION AIC Amount A/C# Amount A/C# Amount A/C Amount # # 1 218 51 205 101 220 151 206 2 209 52 220 102 221 152 207 Fan Review your proper View Help your answer. (10 points) Rony TV ACCOUNTS RECEIVABLE POPULATION AIC Amount A/C# Amount # A/C# Amount AJC Amount 1 218 51 # 205 101 2 220 209 52 151 220 206 3 102 200 221 53 152 207 198 103 224 4 196 153 208 54 169 104 5 226 170 154 55 209 234 105 6 228 6 155 178 210 56 190 106 7 230 156 211 180 57 191 107 232 8 157 212 199 58 180 108 9 234 158 213 201 59 181 109 235 10 159 214 230 60 182 110 210 160 11 215 228 61 209 111 190 161 216 12 212 62 208 112 185 162 13 197 63 214 113 220 163 171 14 190 64 188 114 215 164 240 15 202 65 193 115 210 165 235 16 196 66 196 116 205 166 234 17 233 67 194 117 200 167 190 18 181 68 202 118 195 168 182 19 196 69 207 119 190 169 203 20 211 70 206 120 185 170 171 158 to search o @ DRAW 20 21 22 23 24 25 211 210 208 186 190 191 70 71 72 73 74 75 206 184 182 178 175 209 120 121 122 123 124 125 185 185 180 175 170 172 170 171 172 173 174 175 171 220 198 233 202 197 26 183 27 224 28 226 29 215 30 208 31 200 32 193 33 183 34 203 35 181 36 228 37 230 38 232 39 188 40 199 41 187 42 212 43 230 44 201 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 213 215 231 232 175 176 178 180 182 185 188 189 191 193 195 197 199 202 204 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 173 174 175 176 177 178 179 180 118 180 191 192 193 194 195 196 197 198 199 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 196 102 198 195 206 206 205 205 174 174 180 179 188 178 196 206 216 226 236 94 e here to search 77 78 79 80 174 175 176 81 27 28 29 30 31 32 33 34 35 36 37 38 39 40 205 224 226 215 208 200 193 183 203 181 228 230 232 188 199 187 212 230 201 214 215 189 178 234 204 82 83 84 85 86 87 88 89 90 91 92 93 215 231 232 175 176 178 180 182 185 188 189 191 193 195 197 199 202 204 206 208 210 212 215 218 TEO 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 TOU 177 102 178 198 179 195 180 206 181 206 182 205 183 184 174 185 174 186 180 187 179 188 188 189 178 190 196 191 206 192 216 193 226 194 236 195 196 198 186 197 185 198 184 199 183 200 186 Total 539816.00 177 178 179 180 118 180 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 41 94 42 43 44 45 46 47 48 49 50 95 96 97 98 99 100 to search O