Question
The results of substantive testing of purchase invoices for Gamma Omega Co. are shown below. The five strata correspond to different departments and materiality allocated
The results of substantive testing of purchase invoices for Gamma Omega Co. are shown below. The five strata correspond to different departments and materiality allocated to the accounts payable is $15,000. Calculate the total projected error to the nearest dollar. Show all calculations. What would be the auditors conclusion about the population based on these results?
| Stratum | Recorded Value | Audited Value | Sample Total Value | Stratum Total Value | Projected Error |
| 1 | $10,281 | $10,078 | $130,689 | $250,000 | ? |
| 2 | $8,429 | $11,813 | $32,766 | $120,000 | ? |
| 3 | $7,999 | $12,452 | $140,451 | $190,000 | ? |
| 4 | $5,289 | $4,345 | $64,719 | $170,000 | ? |
| 5 | $17,543 | 18,564 | $122,005 | $160,000 | |
| Total | $49,541 | $57,252 | $490,630 | $890,000 | ? |
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Frank Woods Business Accounting An Introduction To Financial Accounting
Authors: Alan Sangster, Lewis Gordon, Frank Wood
15th Edition
1292365439, 9781292365435
