Audit of sec public registrant auto tire

Assignment Help Accounting Basics

Reference no: EM132848260

Question

AutoTire Inc. is your Client: Monetary Unit Sampling

You have been charged with reviewing a staff auditor's MUS and related procedures on the audit of SEC public registrant Auto Tire Incorporated of 12/31/2020. The staff auditor, Ima W. Rong, claims to have followed monetary unit sampling and performed accompanying audit procedures plan as documented below. The staff auditor's work appears - below - in a numbered list to facilitate your review and our evaluation of your review.

Following the staff auditor's work (attached), you will find a table that includes a new row for numbered item completed by the staff auditor. For each row/numbered item, you must indicate either:

"okay, leave the notes as is"; OR

Both describe and implement, to the extent practicable, any corrections needed.

That is, based on your review notes, we will be able to understand both where you think the staff auditor performed poorly and what you believe would correct the staff auditor's shortcomings (so far as you can tell from the work paper documentation provided). When providing corrections, you should show and explain your work.

Question: The overall sampling interval is $94,737. However, to add some "randomness" to the sampling plan, I oversample the A/P monetary units as compared to the A/R monetary units. Specifically, I will use a sampling interval of one-half of he overall interval for A/P ($94,737/2 = $47,368). At the same time, I double the sample interval for A/R to $189,474. Thus I will sample 13 monetary units from A/R and 44 from A/P, for a total of 57.

Reference no: EM132848260

Questions Cloud

Find the mean and standard deviation of x : Graph f(x) and locate mean (u) and the interval u+ or - 2 sigma on the graph. Note that the probability that x assumes a value within the interval mean

What is the best way to measure sampling risk : What is the best way to measure sampling risk if you are using directed sample selection and List the three dimensions of the COSO internal controls cube

Unit 4 Management and Operations Assignment : HND Business - Unit 4: Management and Operations Assignment Help and Solution - David Game College, UK - Assessment Writing Service

Compute for the variance and standard deviation : Compute for the variance and standard deviation of the probability distribution of the random variable Y, which can only take the values

Audit of sec public registrant auto tire : Audit of SEC public registrant Auto Tire Incorporated - When providing corrections, you should show and explain your work

Find time on the internet than the national average : The GSSmeasures the amount of hours individuals spend on the internet per week (N= 850). Males use the Internet 9.5 hours per week with a standard deviation

What is the level of significance : What is the level of significance? (Enter a number.) State the null and alternate hypotheses. Will you use a left-tailed, right-tailed, or two-tailed test?

Determining the complaints of identity theft out : According to the February 2008 Federal Trade Commission report on consumer fraud and identity theft, 23% of all complaints in 2007 were for identity theft

Calculate the break even point for packy : Calculate the break even point for Packy in unit and RM and Explain what contribution margin is and determine the contribution margin per unit for Packy

User Account

All Pages