Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are the auditor of Jexel, an auto air-conditioner service and repair company, and you have decided to use the mean-per-unit method to test the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
You are the auditor of Jexel, an auto air-conditioner service and repair company, and you have decided to use the mean-per-unit method to test the existence and gross valuation of recorded accounts receivable. The client's records include 10,000 accounts with a total book value of \\( \\$ 1,250,000 \\). You decide to use tolerable misstatement of \\( \\$ 182,000 \\), an incorrect acceptance risk of 5 percent, and an incorrect rejection risk of 4.6 percent. Using Excel, you estimated the standard deviation of the population as \\( \\$ 25 \\). Use Figure 9-8 to obtain the incorrect acceptance and rejection coefficients. Required: a. Determine the sample size. b. Assume you tested the sample and got the following results: The mean audited value of the accounts sampled was \\( \\$ 122 \\). Assuming that the standard deviation of the sample's audited value is also \\( \\$ 25 \\), what is the projocted misstatement for the population? c. Assuming that the standard deviation of the sample's audited value is \\( \\$ 20 \\), what is the projected misstatement for the population? Assuming that the standard deviation of the sample's audited value is \\( \\$ 20 \\), what is the projected misstatement for the population? You are the auditor of Jexel, an auto air-conditioner service and repair company, and you have decided to use the mean-per-unit method to test the existence and gross valuation of recorded accounts receivable. The client's records include 10,000 accounts with a total book value of \\( \\$ 1,250,000 \\). You decide to use tolerable misstatement of \\( \\$ 182,000 \\), an incorrect acceptance risk of 5 percent, and an incorrect rejection risk of 4.6 percent. Using Excel, you estimated the standard deviation of the population as \\( \\$ 25 \\). Use Figure 9-8 to obtain the incorrect acceptance and rejection coefficients. Required: a. Determine the sample size. b. Assume you tested the sample and got the following results: The mean audited value of the accounts sampled was \\( \\$ 122 \\). Assuming that the standard deviation of the sample's audited value is also \\( \\$ 25 \\), what is the projocted misstatement for the population? c. Assuming that the standard deviation of the sample's audited value is \\( \\$ 20 \\), what is the projected misstatement for the population? Assuming that the standard deviation of the sample's audited value is \\( \\$ 20 \\), what is the projected misstatement for the population? You are the auditor of Jexel, an auto air-conditioner service and repair company, and you have decided to use the mean-per-unit method to test the existence and gross valuation of recorded accounts receivable. The client's records include 10,000 accounts with a total book value of \\( \\$ 1,250,000 \\). You decide to use tolerable misstatement of \\( \\$ 182,000 \\), an incorrect acceptance risk of 5 percent, and an incorrect rejection risk of 4.6 percent. Using Excel, you estimated the standard deviation of the population as \\( \\$ 25 \\). Use Figure \\( 9-8 \\) to obtain the incorrect acceptance and rejection coefficients. Required: a. Determine the sample size. b. Assume you tested the sample and got the following results: The mean audited value of the accounts sampled was \\( \\$ 122 \\). Assuming that the standard deviation of the sample's audited value is also \\( \\$ 25 \\), what is the projected misstatement for the population? c. Assuming that the standard deviation of the sample's audited value is \\( \\$ 20 \\), what is the projected misstatement for the population? Assume you tested th. Aeguired 6 and got the following results: The mean audited value of the accounts sampled was \\( \\$ 122 \\). Assuming that the standard deviation of the sample's audited value is also \\( \\$ 25 \\), what is the projected misstatement for the population? What is the confidence interval? Is the account materially misstated? You are the auditor of Jexel, an auto air-conditioner service and repair company, and you have decided to use the mean-per-unit method to test the existence and gross valuation of recorded accounts receivable. The client's records include 10,000 accounts with a total book value of \\( \\$ 1,250,000 \\). You decide to use tolerable misstatement of \\( \\$ 182,000 \\), an incorrect acceptance risk of 5 percent, and an incorrect rejection risk of 4.6 percent. Using Excel, you estimated the standard deviation of the population as \\( \\$ 25 \\). Use Figure \\( 9-8 \\) to obtain the incorrect acceptance and rejection coefficients. Required: a. Determine the sample size. b. Assume you tested the sample and got the following results: The mean audited value of the accounts sampled was \\( \\$ 122 \\). Assuming that the standard deviation of the sample's audited value is also \\( \\$ 25 \\), what is the projected misstatement for the population? c. Assuming that the standard deviation of the sample's audited value is \\( \\$ 20 \\), what is the projected misstatement for the population? Determine the sample size. (Roundup to the next whole number.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Foundations Of Managerial Accounting

Authors: Dr. Susan Galbreath

1st Edition

0390786276, 978-0390786272

More Books

Students also viewed these Accounting questions