You Are Auditing Accounts Receivable for a Small Company and Have

question 40

Essay

You are auditing accounts receivable for a small company and have found the following results:
$$\begin{array} { | c | c | c | c | } \hline \text { Number and Size of Client } & \begin{array} { c } \text { Book Value of } \\\text { Accounts }\end{array} & \begin{array} { c } \text { Book Value of } \\\text { Stratum }\end{array} & \begin{array} { c } \text { Sample } \\\text { Sample }\end{array} \\\hline 1,202 \text { accounts } < \$ 1,000 & \$ 948,378 & \$ 59,175 & \$ 51,256 \\\hline 534 \text { accounts } > \$ 1,000 & \$ 777,504 & \$ 36,400 & \$ 34,400 \\\hline\end{array}$$ Use ratio projection to project your results.

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Definitions:

Institutional Level

Refers to the operations or activities that occur within formal structures or organizations, such as schools, businesses, or government agencies, and how they impact society.

Fair Housing Act

A landmark law in the United States that was passed in 1968 to prevent discrimination concerning the sale, rental, and financing of housing based on race, religion, national origin, or sex.

Categorical Imperative

A foundational concept in Kantian ethics that asserts that moral actions are those that could be made into universal laws applicable to everyone.

Self-Defense

The right to prevent suffering force or violence through the use of a sufficient level of counteracting force or violence.