Question
VARIABLE SAMPLING PLAN: PROBABILITY-PROPORTIONAL-TO-SIZE SAMPLING In a PPS sampling plan with a sampling interval of P25,000 and a risk of incorrect acceptance of 20%, the
VARIABLE SAMPLING PLAN: PROBABILITY-PROPORTIONAL-TO-SIZE SAMPLING
In a PPS sampling plan with a sampling interval of P25,000 and a risk of incorrect acceptance of 20%, the following differences were observed from the test performed:
Book Value Audited Value
P55,000 P50,000
125,000 115,000
150,000 ` 120,000
Assume that the tolerable error acceptable to the auditor is P70,000 for this account balance being tested:
What is the total population projected error. Allowance for sampling risk. What will be the audit conclusion of the auditor?
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Contemporary Auditing Issues And Cases
Authors: Michael Chris Knapp
3rd Edition
0538891173, 9780538891172
