2011 Audit 5 Text Update

# 2011 Audit 5 Text Update - This first page gives a listing...

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This first page gives a listing of the corrected lecture text pages that follow. Print these corrected pages and insert in the lecture text. AUDITING Date Added Lecture Page Number Description 03/14/2011 A-5 18 Corrected value in MathType equation

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Auditing 5 Becker Professional Education | CPA Exam Review A5- 18 © 2010 DeVry/Becker Educational Development Corp. All rights reserved. Mean-Per-Unit Estimation \$875 average value x 5,000 accounts = \$4,375,000 point estimate Ratio Estimation \$175,000 audited value x \$4,500,000 = \$4,275,244 point estimate \$184,200 book value Difference Estimation \$184,200 book value - \$175,000 audited value × 5,000 = \$230,000 projected error 200 \$4,500,000 - \$230,000 = \$4,270,000 point estimate The auditor must then add an allowance for sampling risk (sometimes called a "precision interval") to the point estimate. 7. Form Conclusions about the Balances (or Transactions) Tested a. In deciding whether to accept the client's book value, the auditor determines
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2011 Audit 5 Text Update - This first page gives a listing...

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