Question
You are auditing the financial statements of Blue Pty Ltd, a whitegoodswholesaler. You ask the audit junior to assist you to test whether or not
You are auditing the financial statements of Blue Pty Ltd, a whitegoodswholesaler. You ask the audit junior to assist you to test whether or not purchasesof equipment are fairly stated. You tell him that you will use dollar unit sampling.Your assistant provides you with the information in the table below.
Number of purchases 6,000
Amount of purchases $6,000,000
Sample size60
Dollar value of sample$600,000
Materiality allocated $60,000
Error found in the sample $600
REQUIRED: Draw a conclusion, on the basis of the information provided, as towhether or not purchases are fairly stated. Explain your answer and show allcalculations.
Step by Step Solution
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Objective of checking Purchase details during the audit of financial stat...
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0073379616, 73379611, 978-0697789938
