Goods purchased by the customer

Assignment Help Financial Accounting

Reference no: EM13933313

Following is a set of situations that may or may not involve sampling.

1. An auditor is examining loan receivables at a local bank. The population of loans contains two strata. One stratum is composed of 25 loans that are each greater than $1 million. The second stratum contains 450 loans that are less than $1 million. The auditor has decided to test all loans greater than $1 million and 15 loans less than $1 million.

2. Assume the same facts as number 1 except that the auditor decides to apply analytical procedures to the second strata of loans.

3. An auditor has haphazardly selected 30 sales invoices to be examined for proper pricing of the goods purchased by the customer.

4. The prepaid insurance account is made up of four policies that total $45,000. The auditor has decided that this account is immaterial and decides that no policies will be examined.

Required:
In above points indicate which situations involve audit sampling (statistical or non-statistical) and why. Explain.

Reference no: EM13933313

Questions Cloud

The rate of return an investor actually earns : Question 8.8. The rate of return an investor actually earns from owning a bond is called which one of the following? (Points : 1) Market return Realized yield Annualized coupon yield

Self-leadership and positive psychology : The goal of Assignment 1 is to critically analyse the Self-Leadership and Positive Psychology literatures and apply them to your chosen career.

What does this statement mean as it relates to hearing : What does this statement mean as it relates to hearing? The Transduction of Sensory Information to perception Occurs Through a Series of Stages Beginning with the Passage of the Physical Energy of the Stimulus Through the Structure of the Receptiv..

How many oranges per rupee he purchased on an average : Ram buys I kg. oranges from each of the four places at the rate of 2kg 4kg., 5kg., 8 kg., per rupee respectively. Find out how many oranges per rupee he purchased on an average?

Goods purchased by the customer : Assume the same facts as number 1 except that the auditor decides to apply analytical procedures to the second strata of loans.An auditor has haphazardly selected 30 sales invoices to be examined for proper pricing of the goods purchased by the custo..

Important microeconomic models : "The recent price wars in the supermarket and mobile phone industries have been beneficial to both consumers and their respective industries." Discuss critically, using all the recent theoretical models.

A dial or small container of nucleus-free water : In my friend's Bio lab, the teacher gave her a dial or small container of nucleus-free water, but told her not to drink it. Why can't you drink nucleus-free water?

One company is a high end retailer : One company is a high end retailer, and the other operates a discount store. Which is the discounter? Support your selection by referring to the appropriate ratios.

Years of johnson presidency : During the later years of Johnson's presidency, he focused Vietnam and not on domestic matters. In a minimum of 250 words, double-spaced paper analyze why you believe President Johnson spent most of his time on Vietnam instead of on domestic matte..

User Account

All Pages