User Account

All Pages

What is the initial sample size for each attribute

Assignment Help Accounting Basics
Reference no: EM131796997

The following is a partial audit program for the audit of sales transactions.

1. Foot the sales journal for one month and trace the postings to the general ledger.

2. Review the sales journal for any large or unusual transactions.

3. Examine sales order for evidence of credit approval prior to shipment.

4. Vouch entries in sales journal to sales invoice and shipping document.

5. Examine evidence on sales invoice that the prices were agreed to the approved price list.

6. Recompute extensions of price and quantities on the sales invoice.

7. Trace entries in sales journal to entry in accounts receivable master file.

a. Identify which audit procedures can be tested by using attributes sampling.

b. What is the appropriate sampling unit for the tests in part a.?

c. List the attributes for testing in part a.

d. Assume an ARO of 5% and a TER of 6% for tests of controls and 5% for substantive tests of transactions. The EPER for tests of controls is 1.0%, and for substantive tests of transactions it is 0.5%. What is the initial sample size for each attribute?

Reference no: EM131796997

Questions Cloud

Complete consolidating entry according to c-e-a-d-i sequence : Complete the consolidating entries according to the C-E-A-D-I sequence. Compute the amount of the [ADJ] consolidating entry.
Correct amount of the company gross profit : Determine the correct amount of the company's gross profit in each of the years 2014-2016.
Determine taxable income from the information : Harvey and Betty Duran, both age 37, are married with one dependent child. Determine their taxable income from the following information
What values statements need to provide : Which of the following is NO what values statements need to provide? . Which of the following IS an moral courage
What is the initial sample size for each attribute : What is the initial sample size for each attribute, Examine sales order for evidence of credit approval prior to shipment
What does the calculation of each ratio represent : What does the calculation of each ratio represent? What recommendations do you have for turning a negative trend to a positive trend?
Cash budget for november in good form : Prepare the company's cash budget for November in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash.
Entitle what is the journal entry : Received $6800 in cash for admission fees what is the journal entry? and sold 100 coupon book for $25 each
Record the journal entry to establish the petty cash fund : For September 9th Record the journal entry to establish the Petty Cash fund. For September 30th Record the reimbursement of the Petty Cash Fund.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Maintenance department costs of 320000 are allocated on the

maintenance department costs of 320000 are allocated on the basis of budgeted maintenance-hours. personnel department

  200000 shares of cs issued and outstanding at dec 31 2009

200000 shares of cs issued and outstanding at dec. 31 2009. july 1 2010 issued a 10 stock dividend. unexercised stock

  How much total overhead would be budgeted

If the company prepared a budget for 10,000 machine hours, how much total overhead would be budgeted

  Problem on appropriate adjusting entry

At the beginning of November Manny Co. had $600 worth of supplies on hand. During the month of November Manny Co. purchased $2,100 worth of supplies. On November 30, Manny Co. counted supplies and found that $1,600 remained on hand. What is the ap..

  Prepare a list of your top four managerial accounting

Prepare a list of your Top Four Managerial Accounting Concepts. Please explain the concepts. You should write at least three sentences about each concept. Do not just state that you liked the concept or found it interesting. You must EXPLAIN the c..

  What should be the total direct materials cost

What should be the total direct materials cost according to Hoppe's flexible budget for December

  Define and draw characteristic lines for investments a and b

On a set of market return (x-axis)-investment return (y-axis) axes, use the data to draw the characteristic lines for investments A and B on the same graph.

  What is a dividend

"Dividends must be paid in cash." Do you agree? Explain.

  What are the minimum lease payments

What are the minimum lease payments in this lease agreement? Prepare the necessary journal entries to account for the lease

  Journalize warwick entries to record the purchase

Journalize Warwick's entries to record (a) the purchase, (b) the merchandise return, and (c) the payment

  Warranties and premiums garison music emporium carries

Warranties and Premiums Garison Music Emporium carries a wide variety of musical instruments, sound reproduction equipment, recorded music, and sheet music

  Net increase or decrease in cost

It is estimated that variable manufacturing costs will be reduced from $26,000 to $23,500 annually if the new machine is purchased. The total net increase or decrease in cost for the new equipment for the entire five years is ??

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