An auditor uses ratio estimation to determine the value of the errors in accounts receivable. He concludes

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An auditor uses ratio estimation to determine the value of the errors in accounts receivable. He concludes that the error value is from \($(14,000)\) to \($26,000\) at a 90% reliability. State the results of the audit test in words. Identify the value in the example for the following terms: confidence level, point estimate of the errors, confidence interval, lower confidence limit, and precision interval.

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Applications Of Statistical Sampling To Auditing

ISBN: 9780130391568

1st Edition

Authors: Alvin A. Arens, James K. Loebbecke

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