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Unformatted text preview: 2011 Auditing 5 Update Auditing 5 Update for the 2011 Edition Last Updated March 18, 2011 SECTION A: TEXT AND LECTURE ERRATA Item A.1 Pg. A 5-18, Difference Estimation Example The first part of the Difference Estimation example at the top of the page correctly calculates the projected error to be $230,000. However, $180,000 is then incorrectly used to calculate the point estimate of $4,270,000. The calculation of the point estimate using the correct projected error is (changes highlighted): $4,500,000 - $230,000 $180,000 = $4,270,000 Item A.2 Pg. CQ-31, Class Question #6 CPA-02617 A portion of this question explanation has been cut-off. The full explanation, which can also be found in Passmaster, is as follows: Choice b is correct. When planning a particular sample for a substantive test of details, the auditor should consider how much monetary misstatement in the account might exist without causing the financial statements to be materially misstated (tolerable misstatement) as well as the expected size and...
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- Spring '11