# acc_460_week_1_gasb__and_fasb_acco...

Jun 2nd, 2015
Studypool Tutor
Price: \$10 USD

Tutor description

acc_460_week_1_gasb__and_fasb_acco...

Word Count: 944
Showing Page: 1/8
Mt. Hood Furniture Company Accuracy TestACC 491: Contemporary Auditing IMt. Hood Furniture Company Accuracy TestThe objectives of this audit are to determine the accuracy of the inventory as reported by Mt. Hood Furniture Company. The goals are to determine that the inventory is accurately transcribed to the final accumulation and valuation of the inventory and that the inventory is correctly priced and accumulated. Also included are tests to determine that the proper pricing of raw materials, work in process, and finished goods are recorded.The formula for finding the sample size is N = BV x RF / TM - (AM x EF). BV stands for the book value of the total population, which is \$6,753,764. RF stands for the reliability factor, which is 1. TM stands for the tolerable misstatement, which is \$325,000. Tolerable misstatement represents the maximum misstatement that could occur before the population would be considered materially misstated. The lower the required tolerable misstatement relative to the number and dollar size of transactions the lower the needed tolerable deviation rate. This rate is inversely related to sample size. AM is the anticipated misstatement, which is \$100,000 and EF is the expansion factor for anticipated misstatement, which is 1.15. So N= \$6,753,764 x 1.00 / \$325,000 - (\$100,000 x 1.15) = 32.16. Assuming that an auditor accepts exposure to a risk of incorrect acceptance of 37% and form an opinion of the financial data based

## Review from student

Studypool Student
" Great stuff, glad they allow me to choose tutors. Would definitely come back for this tutor. "

1819 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors