Questions from Auditing and Assurance

Q: An audit partner is developing an office training program to familiarize her

An audit partner is developing an office training program to familiarize her professional staff with audit sampling decision models applicable to the audit of dollar-value balances. She wishes to demo...

Q: In auditing the valuation of inventory, the auditor, Claire Butler

In auditing the valuation of inventory, the auditor, Claire Butler, decided to use difference estimation. She decided to select an unrestricted random sample of 80 inventory items from a population of...

Q: Marjorie Jorgenson, CPA, is verifying the accuracy of outstanding accounts

Marjorie Jorgenson, CPA, is verifying the accuracy of outstanding accounts payable for Marygold Hardware, a large, single-location retail hardware store. There are 650 vendors listed on the outstandin...

Q: You are doing the audit of Peckinpah Tire and Parts, a

You are doing the audit of Peckinpah Tire and Parts, a wholesale auto parts company. You have decided to use monetary unit sampling (MUS) for the audit of accounts receivable and inventory. The follow...

Q: You have just completed the accounts receivable confirmation process in the audit

You have just completed the accounts receivable confirmation process in the audit of Danforth Paper Company, a paper supplier to retail shops and commercial users. Following are the data related to th...

Q: This problem requires the use of ACL software, which is included

This problem requires the use of ACL software, which is included in the CD attached to the text. Information about installing and using ACL and solving this problem can be found in Appendix, pages 838...

Q: Assume that the auditor has selected 100 sales invoices from a population

Assume that the auditor has selected 100 sales invoices from a population of 100,000 to test for an indication of internal verification of pricing and extensions. Determine the CUER at a 10% ARACR if...

Q: Explain what is meant by analysis of exceptions and discuss its importance

Explain what is meant by analysis of exceptions and discuss its importance.

Q: When the CUER exceeds the TER, what courses of action are

When the CUER exceeds the TER, what courses of action are available to the auditor? Under what circumstances should each of these be followed?

Q: Distinguish between probabilistic selection and statistical measurement. State the circumstances under

Distinguish between probabilistic selection and statistical measurement. State the circumstances under which one can be used without the other.