Using Statistical Sampling to Assist in Verifying the Year-End Accounts

question 37

Multiple Choice

Using statistical sampling to assist in verifying the year-end accounts payable balance, an auditor has accumulated the following data:
Projecting the misstatement to the population, the auditor's estimate of year-end accounts payable balance would be:

• A)$5,050,000.
• B)$5,125,000.
• C)$6,000,000.
• D)$6,150,000.

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Definitions:

Nonoccurrence

The failure or absence of an event or condition that was anticipated or required.

Event

A specific occurrence or happening, often of significance, that takes place at a particular time.

Agreement

A mutual understanding or arrangement between two or more parties outlining terms and conditions for a specific purpose.

Payee

The party in a financial transaction who receives payment.