Management Control and Auditing, writing homework help

/in /by

DO NOT ACCEPT IF YOU DO NOT UNDERSTAND OR CANNOT MEET THE DEADLINE

I need help with the following:

Part 1

Apply a risk assessment technique to decision making by using the following example:

Assume that you are going to use nonstatistical sampling to evaluate the results of accounts receivable confirmation for the Bovar audit. Results from previous audits have been excellent. Because of the high quality of the controls at Bovar, you have decided to use an acceptable risk of incorrect acceptance of 10%. There are 3,000 accounts receivable with a gross value of $9,601,883. You have decided that an overstatement or understatement of more than $150,000 would be considered material.

Complete the following:

  • Calculate the required sample size using the following formula:
    • Sample size = (book value of population / tolerable misstatement) x assurance factor
      • Assurance factor:
        • 5% ARIA = 3
        • 10% ARIA = 2
        • 20% ARIA = 1

    • Assume

    that instead of good results from previous audits, Bovar had poor

    results and the controls in place were questionable. Discuss the

    following:

    • How would this affect your sample size?
    • How would you use this information in your sample size determination?
    • How would you select the accounts for testing using systematic selection?
     
    Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!
    Use Discount Code "Newclient" for a 15% Discount!

    NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.