AICPA Exam CPA-Auditing Topic 2 Question 13 Discussion

Actual exam question for AICPA's CPA-Auditing exam

Question #: 13
Topic #: 2

In a probability-proportional-to-size sample with a sampling interval of $5,000, an auditor discovered that a selected account receivable with a recorded amount of $10,000 had an audit amount of $8,000. If this were the only error discovered by the auditor, the projected error of this sample would be:

A$1,000

B$2,000

C$4,000

D$5,000

Show Suggested Answer

Suggested Answer: B

N/A = not applicable, as the actual difference of $2,000 is used when the recorded amount is larger than the sample interval.

Choice 'b' is correct. There is a $2,000 projected error in this PPS sample.

Choices 'a', 'c', and 'd' are incorrect, based on the above Explanation: .

by Allene at May 07, 2022, 01:16 AM

Limited Time Offer

25%

Off

Get Premium CPA-Auditing Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Currently there are no comments in this discussion, be the first to comment!