MGT421H5 Study Guide - Final Guide: Confidence Interval, Statistical Model, Accounts Receivable
Document Summary
This practice problem has 4 parts a, b, c and d. you will not be expected to make the sample size calculation on the exam. However, you are expected to understand a) relationship between variables such as aria, sample size, tolerable misstatement, estimated population misstatement, etc. ; and b) evaluate whether an account is fairly stated based on the findings/facts presented in the case. In other words, you should be able to figure out whether you can extrapolate sample to population and how, and what conclusions to draw. Assume you have been tasked with sending out a/r confirmations for meridian in order to substantively test balance of the a/r account. You already tested controls and they are excellent so you decide to go with aria of 10%. There are 3,000 accounts receivable transactions with the total value of ,900,000. They are all similar in size and are treated as a single stratum.
