You are auditing the financial statements of Blue Pty Ltd, a whitegoods wholesaler. You ask...
90.2K
Verified Solution
Link Copied!
Question
Accounting
You are auditing the financial statements of Blue Pty Ltd, a whitegoods
wholesaler. You ask the audit junior to assist you to test whether or not purchases
of equipment are fairly stated. You tell him that you will use dollar unit sampling.
Your assistant provides you with the information in the table below.
Number of purchases
6,000
Amount of purchases
$6,000,000
Sample size
60
Dollar value of sample
$600,000
Materiality allocated
$60,000
Error found in the sample
$600
REQUIRED: Draw a conclusion, on the basis of the information provided, as to
whether or not purchases are fairly stated. Explain your answer and show all
calculations.
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.