When using nonstatistical sampling as a test of an account balance, how does the auditor do the
Question:
a. Determine the sample size.
b. Select the sample.
c. Evaluate the sample results.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 81% (11 reviews)
When using nonstatistical sampling the auditor must use judgment in determining the sample size ...View the full answer
Answered By
Zablon Gicharu
I am an educator who possesses the requisite skills and knowledge due to interacting with students for an extended period. I provide solutions to various problems in step-by-step explanations, a well-thought approach and an understandable breakdown. My goal is to impart more straightforward methodologies and understanding to students for more remarkable achievements.
5.00+
4+ Reviews
10+ Question Solved
Related Book For
Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
Question Posted:
Students also viewed these Auditing questions
-
How does the auditor determine whether marketable securities are properly classified as short-term securities or long-term investments? What are the accounting implications of the classification as...
-
When performing a dual-purpose test, how does the auditor arrive at the required sample?
-
How does the auditor investigate disclosures for debt, pension and postretirement benefits, and taxes?
-
The quarterly sales for a software product over the past three years are given in the table below. 1) Forecast the demand for year 4 using the moving average technique for 3 periods. 1) Compute the...
-
A woman who used to drink about one liter of regular cola every day switches to diet cola (zero calorie) and starts eating two slices of apple pie every day. Is she now consuming fewer or more...
-
To calculate the number of days in the holding period, a taxpayer should: a. Include the date of acquisition b. Exclude the date of disposition c. Exclude the date of acquisition d. Include the date...
-
EXERCISE 22 Apply Overhead Cost to Jobs LO22 Luthan Company uses a plantwide predetermined overhead rate of $23.40 per direct labor-hour. This predetermined rate was based on a cost formula that...
-
The following list of accounts is taken from the adjusted trial balance of Goforth Company. Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $45,000...
-
An anticipated purchase of equipment for $490,000 with a useful life of years and no residual value is expected to yield the following annual net incomes and net cash flows: Year 1 2 3 4 Net Income...
-
Maryssa McFadden opened a public relations firm called Dance Fever on August 1, 2024. The following amounts summarize her business on August 31, 2024: (Click the icon to view the amounts.) Bal. a The...
-
Define the following terms: (a) Misstatement, (b) Factual misstatement, (c) Projected misstatement, (d) Tolerable misstatement, (e) Expected misstatement.
-
The following information relates to a nonstatistical sample used for a price test of inventory: a. What is the best estimate of the total misstatement? b. Are these results acceptable, assuming...
-
What is tender? Mention any four types of tenders.
-
This case study is based on a fictional character on NBC's The Office. Michael is the central character of the series, serving as the Regional Manager of the Scranton branch of a paper distribution...
-
What is the significance of a balance sheet in understanding a firm's financial position? How do changes on the right side of the balance sheet (liabilities and equity) impact a company's financial...
-
A current event analysis where the article must focus on a management concepts). You will read the article and then provide an analysis of the subject matter discussed. The article should complement...
-
Given an exponential distribution with =20, what is the probability that the arrival time is a. less than X=0.2? b. greater than X = 0.2? c. between X=0.2 and X 0.3? d. less than X=0.2 or greater...
-
Choose at least two measures of employee attitudes. Discuss them and tell me about your discussion. Which group you believe are the most effective and efficient measures? Why? 2) Discuss turnover,...
-
Dwight Corporation has the following groups of individually insignificant leases at 12/31/15. Prepare journal entries to record impairment for each of the groups at 12/31/15. Total costs Total...
-
Why is it important to understand the macro-environment when making decisions about an international retail venture?
-
In 1870, real per capita GDP was $1,800 in England and $1,400 in the United States (30 percent higher in England). In 1970, real per capita GDP was $7,000 in England and $11,000 in the United States...
-
A major change in the accounting system has taken place during the year. The effect on control testing is that: (a) The auditor should ensure controls testing is performed for periods both before and...
-
Working papers: (a) Document the purpose of the test of the control identified and the results of the test, including a specific conclusion about whether the test results supported the overall...
-
Designing substantive procedures responds to: (a) The risk of material misstatement at the entity level. (b) The risk of material misstatement at the assertion level. (c) The risk of all types of...
-
A firm purchased a new piece of equipment with an estimated useful life of eight years. The cost of the equipment was $65,000. The salvage value was estimated to be $10,000 at the end of year 8....
-
5. Which of the following is the cheapest for a borrower? a. 6.7% annual money market basis b. 6.7% semi-annual money market basis c. 6.7% annual bond basis d. 6.7% semi-annual bond basis.
-
Waterloo Industries pays 30 percent corporate income taxes, and its after-tax MARR is 24 percent. A project has a before-tax IRR of 26 percent. Should the project be approved? What would your...
Study smarter with the SolutionInn App