Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. non-statistical problem you work for a top-notch a

Non-statistical Problem You work for a top-notch audit firm, Foreman & Griswold LLP. You have...

80.2K

Verified Solution

Question

Accounting

image

Non-statistical Problem You work for a top-notch audit firm, Foreman & Griswold LLP. You have been assigned to audit inventory at FMG Sporting Goods. Due to the composition of the account, you have decided to audit the balance using non-statistical sampling methods. The account balance is $13,270,000 and is comprised of 1,475 items. The account balance has been segregated into the following strata: Number and size of Book Value of inventory items Stratum 5 items $100,000 520 items >$10,000 950 items $100,000 Calculate the sample size. You have identified the following errors during your testing. Use the ratio projection method of evaluation to calculate the projected misstatement. a. b. Book Value Audit Value of Amount of $100,000 $ 570,000 551,000 $19,000 5,000 Strata of Sample le Misstatement $10,000 1,600,000 ,573,000$27,000 $10,000 900,000 $ 895,000 $ c. After assessing the test results, what is your conclusion

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

1. Explain why the earliest evidence of animals in fhe fossil record would come from chemicals as...

Medical Sciences
1.2K views

Briefly explain how the evolution of the sickle cell allele is an example of human biocultural...

Biology
1.2K views

A scientist takes some of the genes from one organism and places them into another...

Physics
1.2K views

40 A particle of mass m is projected upwards with Ve 2 ve escape velocity...

Geometry
1.2K views

300 00 W two that apply 2 75 7189 611 7 6 ates a figure...

Basic Math
1.2K views

A biologist has 400 kg of nutrient A 600 kg of nutrient B and 300...

Statistics
1.2K views

Certified childcare providers for children ages 0 3 years exposed Office staff not exposed Total...

Calculus
1.2K views

Question Completion Status Use first and second derivative information to sketch the graph of the...

Calculus
1.2K views

and Question 7 Solve the equation Be sure to chec 6y 4 9y 11 Select...

Calculus
1.2K views

Evaluate the following integral Include absolute values only when needed dx x 7 9x 7...

Algebra
1.2K views

3x 5 with domain 0 o Then 2x 3 Enter exact answers not decimal approximations...

Finance
1.2K views

A pension fund manager is considering three mutual funds. The first is a stock fund,...