Math/Physic/Economic/Statistic Problems

Math/Physic/Economic/Statistic Problems

This Project is for my Auditing Class. So pl provide this assignment to someone who has Accounting and Auditing Experience. Also This assignment needs Calculation and writing. i just select the calculation, but you will more detail in instructions.

Project II (80 pts for Parts A, B in total)
A. Tests of Controls
1. Assume that Pea Blossom’s sales orders issued for the year are numbered from 1050 through 1349. You wish to perform a test of the “approval” control procedure to see if sales orders are being properly approved by Pea Blossom’s credit manager Brenda Robertson (as evidenced by her initials, BR).
2. You want to use Attribute Sampling and set ARACR at 10%, TER at 15% and EPER at 1%. Determine the appropriate sample size and document your procedures in proper workpaper format (i.e., title, reference, tic marks).

3. Using Excel’s RANDBETWEEN function (fx icon, select math/trig in pull down menu), select a random sample of sales order numbers for the sample size you determined in 2). Don’t forget to get a few extras in case some of your sample items are voided transactions, but only use the extras if you have to replace sample items. If you save this file, you can just use it as the workpaper and add the parameters from part 2

4. Using the random sample in 3) above, look up your sample numbers in the sales order Excel file provided on Titanium by the partner in charge (your instructor). Don’t include (i.e., don’t print) this file in your answer-it’s just there for you to examine. Prepare a workpaper to document your sample #’s (maybe just use the excel worksheet with your sample numbers) and use tic marks to show whether the control is functioning for each sample item. Also, based on your sample results, document on your workpaper your conclusion about whether you believe the control is functioning in the population considering the previous parameters set.

5. You normally wouldn’t be able to know this, but, assume that the Audit Genie told you that the actual number of unapproved sales orders in the population was 30 (you wouldn’t know this unless you tested all of them). Did your sampling procedures give you the correct signal about whether the control was truly functioning in the population?

By admin in Essays on August 2, 2016