FILM-6010 Study Guide - Final Guide: Analytical Review, Accounts Payable
14 Jun 2020
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This examination script is not to be deposited in the library. Phil jenson is auditing inventories as part of the audit of dogger bank inc. There are 4,250 inventory items with a total recorded value of ,250,000. A misstatement is defined as a difference between the book amount and the audited amount. Phil is going to use monetary unit sampling and makes the following decisions about the audit of inventory: Tolerable misstatement (same as for upper as for lower) As the upper bounds and lower bounds are the same, the sample size is 49. 3 of 13: (20 marks) assume that a sample of 50 items is selected and that the following are the only differences between book and audited values identified (understatements are in parentheses). Based on this sample, calculate the adjusted overstatement and understatement error bounds. Read along the row of 50 sample size on the first table (5% aracr)
