AICPA CPA-Auditing Exam - 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

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Kenda

4 months ago

I thought it would be more than that, interesting!

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Oliva

5 months ago

It's definitely $2,000, simple math!

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Xuan

5 months ago

Wait, how can we be sure that's the only error?

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Cassi

5 months ago

Totally agree, that's how you calculate it!

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Ben

5 months ago

The error is $2,000 based on the sample size.

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Whitney

5 months ago

I've got a good feeling about this. The pattern and the associated SOAP elements seem familiar, so I'll give it my best shot.

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Carlee

5 months ago

Okay, let's think this through step-by-step. We need to set up an entitlement template for the standard support, which includes 20 hours of email support and phone as a premium service in allotments of 10 incidents. I think option B looks like the right approach here.

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Renato

6 months ago

This seems like a tricky one. The team is clearly trying to downplay the requirements, but I'm not sure if they're trying to get them removed or just change the prioritization. I'll need to think this through carefully.

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Rosalind

6 months ago

I'm a bit confused by the options here. I'll need to review my notes on web application security to figure this out.

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Emogene

6 months ago

I'm pretty sure the answer is C. ulimit is the command used to set resource limits, including the size of core files.

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Simona

6 months ago

I'm pretty confident that option A is the correct answer. The question is specifically asking about environmental conditions causing software failures, and that option covers the relevant factors like magnetism and radiation that can impact electronic devices and the software running on them.

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