Problem #3 - Classical Variables Sampling - 3 Points Each Make sure you indicate whether the company's balance is overstated or understated and by how much (Some Students don't indicate understated or overstated and I have to mark it wrong as I can't assume the correct answer) ANSWERS: Auditor Estimated Value of Account Mean Per Unit Ratio Estimation Difference Method $ 89 $ 811 $ #13 Overstated or Understated and by how much $ TWO Answers Here #10 #12 314 Joe Smith, CPA, has randomly selected and audited a sample of 150 of Wil-Mart's accounts receivable. Wil-Mart has 3,500 accounts receivable accounts with a total book value of $5,500,000 His sample results are as follows: Average audited value $1,625 Average book value $1,565 Calculate the accounts receivable estimated audited value and projected misstatement using the 1. Mean-per unit (Round final answers to whole dollar) 2. Ratio method (Round final answers to whole dollar) 3. Difference method (Round final answers to whole dollar) Mean Per Unit Auditor Estimated Value of Account Company's Balance Overstated/Understated and by how much? Ratio Estimation Auditor Estimated Value of Account Company's Balance Overstated/Understated and by how much? Difference Method Auditor Estimated Value of Account Company's Balance Overstated/Understated and by how much? Problem #4 - Classical Variables Sampling - 3 Points Each Make sure you Indicate whether the company's balance is overstated or understated and by how much (Some Students don't indicate understated or overstated and I have to mark it wrong as I can't assume the correct answer) ANSWERS: Auditor Estimated Value of Account Mean Per Unit Ratio Estimation Difference Method Overstated or Understated and by how much $ TWO Antwers Here #16 #18 #20 $ $ $ #15 017 #19 Joe Smith, CPA, has randomly selected and audited a sample of 150 of Wil-Mart's accounts receivable. Wil-Mart has 2,750 accounts receivable accounts with a total book value of $5,500,000 His sample results are as follows: Average audited value $1,895 Average book value $2,145 Calculate the accounts receivable estimated audited value and projected misstatement using the 4. Mean-per unit (Round final answers to whole dollar) 5. Ratio method (Round final answers to whole dollar) 6. Difference method (Round final answers to whole dollar) Mean Per Unit Auditor Estimated Value of Account Company's Balance Overstated/Understated and by how much? Ratio Estimation Auditor Estimated Value of Account Company's Balance Overstated/Understated and by how much? Difference Method Auditor Estimated Value of Account Company's Balance Overstated/Understated and by how much
