How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Dr. Clark's SCIENCE Your Own Que...
Dr. Clark's SCIENCE
Dr. Clark's SCIENCE, Engineer/Scientist
Category: Homework
Satisfied Customers: 195
Experience:  PhD Biomedical Engineering, test prep and homework tutor
Type Your Homework Question Here...
Dr. Clark's SCIENCE is online now
A new question is answered every 9 seconds

ACC/491 Contemporary Auditing Chapter 13 Case 13-36 Mt.

Customer Question

ACC/491 Contemporary Auditing Chapter 13: Case 13-36 – Mt. Hood Furniture—PPS Sampling Problem
You have been assigned the task of testing the accuracy of the final inventory compilation for Mt. Hood Furniture. You may assume that you have separately observed the inventory and that you are satisfied that the inventory was accurately counted. However, you need to test that quantities were accurately transcribed to the final accumulation and valuation of inventory and that the inventory is correctly priced and accumulated. The table beginning on page 617 presents the audited values associated with Mt. Hood’s pricing and accumulation of all items in inventory. The book values will be given to you by your professor. You may assume that you have performed the tests to determine the proper pricing for raw materials, work in process, and finished goods. The student should understand that the auditor will normally obtain this information only for the items included in the sample.
1. Identify the audit objectives that are accomplished by this test.
2. Determine sample size based on the following audit judgments.
a. Tolerable misstatement is assessed at $325,000.
b. The risk of incorrect acceptance is assessed at 37 percent.
c. Anticipated misstatement is assessed at $100,000.
3. Develop a scenario that is consistent with setting the risk of incorrect acceptance at 37 percent.
4. Select a PPS sample of the above inventory population using the sample size determined in (2) above.
5. Explain the tests that you would perform to test the correctness of pricing of raw materials, work in progress, and finished goods. (The student may wish to consult Chapter 16.)
6. Determine the amount of projected population misstatement based on your sample.
7. Considering your quantitative and qualitative results, develop a statistical conclusion and an audit conclusion based on your sample.
Submitted: 6 years ago.
Category: Homework
Expert:  Dr. Clark's SCIENCE replied 6 years ago.


Welcome to JustAnswer, a paid support site.



A document is available for you review here. This link is only viewable for 7 days.


Additionally, this document is password XXXXX so that others cannot print or copy the contents. Therefore, if another person searches online for the same answer, they will be unable to use it.


If you are satisfied with the contents of the document, please press the ACCEPT button. From there I will provide you with the password, and you can print and/or copy the contents at your leisure.


If you experience difficulty or are not satisfied with the response, please let me know.

This is for educational/instructional purposes only.


Positive Feedback is appreciated!

Dr. Clark's SCIENCE and other Homework Specialists are ready to help you
Expert:  Dr. Clark's SCIENCE replied 6 years ago.
Thanks for accepting my answer. Here is the link to the unlocked document. Please let me you if you experience difficulty.
Customer: replied 6 years ago.
How to I export this document into Microsoft Word? Thanks for all your help.
Expert:  Dr. Clark's SCIENCE replied 6 years ago.

You need to spend $3 to view this post. Add Funds to your account and buy credits.

Related Homework Questions