Acc 555 Week 4

957 Words4 Pages
ACCT555 Homework week 6 Maria Jones Problem 14-21 a. (4) b. (4) c. (3) Problem 14-22 a. (4) b. (3) c. (1) d. (1) Problem 14-23 a. (4) b. (4) c. (2) Problem 15-11 Sampling risk is risk that auditor reaches incorrect conclusion because sample is not representative of the population. Sampling risk is an inherent part of sampling because not the whole population is tested. Sampling risk can be reduced by increasing sample size. If auditor uses appropriate sample selection method, it can make sample more representative, but not reduce or eliminate sampling risk. Using statistical method of sample selection and evaluation can help auditor measure the risk associated with a given sample size. Nonsampling…show more content…
Find the difference 3. Cutoff Each cash receipt should be entered in the cash Trace recorded cash receipts at the end of receipts journal the day it arrived. Cash receipts Financial statements period and at the cutoff should be internally verified. beginning of the next period to bank deposits on the bank statement 4. Realizable value Cash receipts records should be internally verified Evaluate whether the allowance is adequate With Prelisting of cash receipts including consideration of the

More about Acc 555 Week 4

Open Document