Chapter 09 - Audit Sampling: An Application to Substantive Tests of Account Balances
9-1
CHAPTER 9
AUDIT SAMPLING: AN APPLICATION TO
SUBSTANTIVE TESTS OF ACCOUNT BALANCES
Answers to Multiple-Choice Questions
9-11
d
9-16
b
9-12
d
9-17
a
9-13
b
9-18
a
9-14
a
9-19
c
9-15
c
9-20
c
Solutions to Problems
9-21
a.
The advantages of MUS over classical variables sampling are as follows:
•
MUS sampling is generally easier to use than is classical variables sampling.
•
The calculation of sample size in a MUS sample is not based on an estimate of the
standard deviation in the population.
•
MUS sampling in conjunction with probability-proportional-to-size selection
results in a stratified sample.
•
Individually significant items are automatically identified.
•
If no misstatements are expected, MUS will usually result in a smaller sample size
than classical variables sampling.
b. Using Table 8-5 in the text with a desired confidence level = 95%; tolerable
misstatement = 5% ($15,000
÷
$300,000); and expected misstatement = 2% ($6,000
÷
$300,000); the sample size is equal to 181 items.
The sampling interval is $1,657
($300,000
÷
181).
Using ACL with a desired confidence level = 95%; population = $300,000; tolerable
misstatement = $15,000; and expected misstatement = $6,000; the sample size is
equal to 161 items.
The sampling interval is $1,853.93.
c.
The total projected misstatement for the three misstatements identified is calculated
by first computing the tainting factor as follows:
Misstatement
Number
Book
Value
Audit
Value
Tainting
Factor
1
$400
$320
.20
2
500
0
1.00
Not applicable, since book value

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