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 1 selected haphazardly by non- received from customer, but $10,000 alternative procedures statistical sampling. Corporation performed successfully. Representative sample selected haphazardly by non- Illustration LLC $18,000 $18,000 Answer statistical sampling. below. Representative sample sample Selection 3 selected haphazardly by non- $20,000 $19,800 statistical sampling. Partnership 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 Evaluation of Results: (A)Fail/Exception; (B)Pass/No Exception; or (C) Number Cannot be Determined [Put only 1 letter below) 1(EX: A) 3 Q4-iii. 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) (EX: A- Because XXX.) In 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 1 why briefly (1-2 sentences): ANSWER: EX: (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 Dollar Value Items TOTAL FULL POPULATION $4,000,000 $44,000,000 $3,950,000 $43,025,000 $50,000 $975,000 in smo 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 1 selected haphazardly by non- received from customer, but $10,000 alternative procedures statistical sampling. Corporation performed successfully. Representative sample selected haphazardly by non- Illustration LLC $18,000 $18,000 Answer statistical sampling. below. Representative sample sample Selection 3 selected haphazardly by non- $20,000 $19,800 statistical sampling. Partnership 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 Evaluation of Results: (A)Fail/Exception; (B)Pass/No Exception; or (C) Number Cannot be Determined [Put only 1 letter below) 1(EX: A) 3 Q4-iii. 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) (EX: A- Because XXX.) In 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 1 why briefly (1-2 sentences): ANSWER: EX: (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 Dollar Value Items TOTAL FULL POPULATION $4,000,000 $44,000,000 $3,950,000 $43,025,000 $50,000 $975,000 in smo
