Additional Module G Slides - SV

Additional Module G Slides - SV - 4,000, would the auditor...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Additional Module G Slides
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Classical Variables Sampling There are different ways to estimate the  account balance Mean-per-unit Ratio estimation* Difference estimation* These methods essentially give the same  answer.
Background image of page 2
Mean-per-unit 1. Find the average account balance for  the audited sample 2. Multiply the average account balance by  the number of total observations
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Mean-per-unit Example ABC has an A/P balance of $100,000  comprised of 130 vendors. The auditor  selects 20 items for testing. The total  audited balance of the sample is $14,980.  If the auditor can tolerate a 7% error of the  balance and the confidence interval is +/- 
Background image of page 4
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 6
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 4,000, would the auditor conclude the balance is fairly stated? Ratio Estimation 1. Calculate ratio for the sample: Audited Sample Bal/Book Sample Bal 2. Multiply Sample Ratio by the Book Balance. Ratio Estimation ABC has a $200,000 A/P balance comprised of 180 vendors. The auditor selects 25 items for testing. The unaudited balance of the sample is $28,500 and the audited balance is $27,770. If the auditor can tolerate a 7% error of the balance and the confidence interval is +/- 5,000, would the auditor conclude the balance is fairly stated?...
View Full Document

This note was uploaded on 02/05/2011 for the course ACCT 461 taught by Professor Staff during the Spring '08 term at George Mason.

Page1 / 6

Additional Module G Slides - SV - 4,000, would the auditor...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online