Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
requirements d, e, and f
Misstatement in
Related Accounts
Difference: Other
Books Timing Misstatement Balance Income
Balance Amount Over (Under) Difference: in Accounts Sheet Statement
Per Confirmed Amount No Payable Misstatement Misstatement Brief
Vendor Books by Vendor Confirmed Misstatement o/s (u/s) o/s (u/s) o/s (u/s) Explanation
Key Accounts (>$250,000)
FiberChem 793,050 825,550 (32,500) (32,500) (32,500) FOB Origin ( Inventory and Accounts payable)
Total 793,050 825,550 (32,500) - (32,500) (32,500) -
Accounts in Stratum $50,001 - $250,000
Mobil 93,210 131,022 (37,812) (37,812) Timing difference - shipment in transit
Norris 88,315 205,611 (117,296) (117,296) 117,296 Unrecorded A/P (Purchases and Accounts payable)
Remington 123,411 123,411 - 53,529 (53,529) Pinnacle recorded FOB destination shipment they didn't receive
(Purchases and Accounts payable)
Advent 51,750 59,250 (7,500) (7,500) (7,500) B/S fixed asset error
Total 356,686 519,294 (162,608) (37,812) (71,267) (7,500) 63,767
Accounts in Stratum less than or equal to $50,000
Fuller 32,470 39,570 (7,100) (7,100)
Total 32,470 39,570 (7,100) (7,100) - - -
Estimate of misstatements in the income statement
M/S in sample-Stratum $50,001-$250,000 63,767
Dollars sampled-Stratum $50,001-$250,000 2,660,879
Dollars in Pop-Stratum $50,001-$250,000 5,212,467
Income statement m/s - Point estimate 124,915 (63,767/2,660,879*5,212,467)
Estimate of sampling error 100,000 Highly judgmental
Total Estimate 224,915
Estimate of misstatements in accounts payable
Misstatements in key items (32,500)
Misstatements in stratum $50,001-$250,000:
Misstatements in sample (71,267)
Dollars sampled 2,660,879
Dollars in Pop-Stratum $50,001-$250,000 5,212,467
Point estimate (139,607) (-71,267/2,660,879*5,212,467)
Misstatements in stratum<$50,000
Misstatements -
Dollars sampled 646,325
Dollars in Pop-Stratum 4,985,777
Point estimate - (0/646,325*4,985,777)
Accounts payable m/s-Point estimate (172,107)
Estimate of sampling error (150,000) Highly judgmental
Total Estimate (322,107)
