Question
The auditor selected the following accounts to perform the confirmation of accounts receivable procedures. Complete Column C, D, E, and F in Table B Table
The auditor selected the following accounts to perform the confirmation of accounts receivable procedures. Complete Column C, D, E, and F in Table B
Table B
A Book Value | B Audited Value
| C Misstatement or tainting amount A-B | D Tainting Factor % (C/A) | E Sampling Interval | F = E*D1 Projected Misstatement |
(top stratum) $750,000
|
$500,000 |
|
|
|
|
lower stratum $300,000
|
$150,000 |
|
|
|
|
Total | - |
|
|
|
|
Answer the following using the Table B that you completed
What is the Misstatements or the tainting amount from Colum C ________________
What is the correct tainting factor from Column D for the two bottom strata . _______
Show your calculation here to receive full credit
|
Complete Colum E by putting the Sample Interval you calculated earlier.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started