User Account

All Pages

Basic precision and total projected misstatement

Assignment Help Accounting Basics
Reference no: EM13153026

As auditor for the Harder Company, you decide to use PPS sampling in determining the fairness of accounts receivable. In executing the plan, you discover the following misstatements:

Book Audit
Value Value
$1,500 $1,000
2,400 1,200
8,200 7,500
6,000 5,400
9,000 8,000

The book value of the accounts receivable is $720,000, the RF factor at a 5% risk of incorrect acceptance is 3.0, and sample size is 90. The incremental change in reliability factors for the first four misstatements are 1.75, 1.55, 1.46, and 1.40.

REQUIRED:

1. Calculate basic precision and the total projected misstatement.

2. Determine the incremental allowance for sampling risk and the upper misstatement limit.

3. State the quantitative conclusion that can be drawn from the sample assuming tolerable misstatement is $30,000.

Reference no: EM13153026

Questions Cloud

Measurement of present value of expected cash flows : How do you measure the present value of expected cash flows? Describe the difference between present value and an annuity due and when is such a difference relevant to a given business transaction?
Calculate the mass of magnesium : calculate the mass of magnesium that is required to produce 35.8ml of hydrogen gas at 28°c and a barometric pressure of 745 mmHg when collected over water?
Offer a structure for the following compound : Provide a structure for the following compound
How is the excitation wavelength prevented : How is the excitation wavelength prevented from reaching your eyes in a fluorescence microscope?
Basic precision and total projected misstatement : Calculate basic precision and the total projected misstatement. Determine the incremental allowance for sampling risk and the upper misstatement limit.
Is enough evidence to reject claim-violence on television : Suppose that a random sample of 200 adults found that 110 thought there is too much violence on television. Is this enough evidence to reject the claim? What do we want to know?
How many firms are in this industry : The market demand curve for the industry is D(P) = 240 ? P/2. At the equilibrium market price, each firm produces 20 units. What is the equilibrium market price, and how many firms are in this industry?
Which arrow would you cross out to represent the effect : A newly identified plant virus infects and kills its host by inserting large protein channels into thylakoid membranes, creating permanent holes. Which arrow would you cross out to represent the effect of these holes?
Explain how original phillips curve differs from expectation : What does this imply about the current versus future expected exchange rate (for the Australian and Canadian dollars)? Explain.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Treatment on the bank reconciliation

If a check correctly written and paid by the bank for $428 is incorrectly recorded on the company's books for $482, the appropriate treatment on the bank reconciliation would be to:

  What is the basis in tenika hands of distributed property

Tenika has a $10,000 basis in her interest in the TF Partnership and no remaining precontribution gain immediately before receiving a current distribution that consisted of $4,000 in money, plastic tubes held in inventory with a $3,000 basis to th..

  Calculate the cash collections

Calculate the cash collections that would be included in the cash budgets for August and September.

  Stacks of inventory

As Jonah wades through huge piles of the inventory and questions the team on operations, he quickly identifies the problem. Which of the implemented methods above does Jonah contribute to stacks of inventory?

  What is the period that government -paid interest runs

On April 3, 2008, Mark filed his 2007 income tax return, which showed a tax due of $80000. On June 1, 2010, he filed an amended return for 2007 that showed an additional tax of $10000. Mark paid the additional amount. On May 18, 2011, Mark filed a..

  Efficient in pricing and tax consequences

If a firm issues a bond to raise money to finance a project, does this debt financing yield a zero net present value? ( assuming that the market is efficient in pricing and tax consequences are irrelevant). yes or no. explain?

  Impact on consolidated financial statements

Which of the following describes the impact on consolidated financial statements of upstream and downstream transfers?

  Semiannually on a straight-line basis

Schuss Inc. issued $3,000,000 of 10%, 10-year convertible bonds on June 1, 2010, at 98 plus accrued interest. The bonds were dated April 1, 2010, with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-li..

  Total controllable cost variance

A company's flexible budget for 48,000 units of production showed variable overhead costs of $72,000 and fixed overhead costs of $64,000. The company incurred overhead costs of $122,800 while operating at a volume of 40,000 units. The total contro..

  Income from the current tax year

The partnership paid office expenses of $100,000. In addition, KKM distributed $10,000 each to partners Kaylyn and Kristie, and the partnership paid partner Megan $20,000 for administrative services. Kaylyn reports the following income from KKM du..

  What is the budgeted dollar amount of merchandise purchases

What is the budgeted dollar amount of merchandise purchases for November?

  Compute the net cash from operating activities

Glitter Girl, Inc. recognized net income of $150,000 including $26,000 in depreciation expense.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd