User Account

All Pages

Calculate the incremental allowance for sampling risk

Assignment Help Accounting Basics
Reference no: EM132472308

Question - Evaluating a PPS sample Assume the following misstatements were found in a PPS sample:

Sample Item

Book Value

Audit Value

1

$650

$585

2

540

0

3

1,900

0

4

2,200

1,650

5

2,800

2,660

Required -

a. Calculate the projected misstatement assuming:

The sampling interval was $1,800.

The sampling interval was $ 2,000.

b. If a risk of incorrect acceptance of 15% is specified in the sample design, the sampling interval is $2,000, and five misstatements are found as enumerated above, calculate:

Basic precision.

The incremental allowance for sampling risk.

The upper misstatement limit.

c. If tolerable misstatement were $50,000 and expected misstatement were $10,000, what conclusion would you reach based on your results in (b)?

Reference no: EM132472308

Questions Cloud

Difficulties in measuring the intelligence of machines : Difficulties in measuring the intelligence of machines. Survey the literature from the past six months to find one application each for DSS, BI, and analytics.
Discuss the importance of disaster recovery team : After reading Chapter 8 discuss the importance of the personnel assigned to the Disaster Recovery Team and their role. You can use outside research.
Calculate the total costs of the special order : Calculate the total costs of the special order. Calculate the cost of the special order if ABC Ltd uses machine time as the basis for allocating overheads
Define reasons to turn on multifactor authentication : List 5 reasons to turn on multifactor authentication? Provide at least two additional links to articles related to multifactor authentication.
Calculate the incremental allowance for sampling risk : If a risk of incorrect acceptance of 15% is specified in the sample design, the sampling interval is $2,000. Calculate incremental allowance for sampling risk
Examine why is the given effort necessary : Organizations are struggling to reduce and right-size their information foot-print, using data governance techniques like data cleansing and de-duplication.
Compute the ending inventory at september : Compute the ending inventory at September 30 using the FIFO, LIFO and average-cost methods. (Round average cost per unit to 3 decimal places)
Prepare a contingency planning document : Assume that you have been hired by a small veterinary practice to help them prepare a contingency planning document. The practice has a small LAN with four.
Have you or someone you know ever received a chain letter : Have you or someone you know ever received a chain letter, phishing message, or some other fraudulent message via email? If so, please share this experience.

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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