Left and Right PAs Audited the Accounts Receivable of Investo

question 44

Essay

Left and Right PAs audited the accounts receivable of Investo Limited on a sample basis. There were 2,000 customer accounts in the subsidiary ledger with a total recorded value of $375,000. As part of the audit program, Left and Right selected a sample of 100 accounts having a recorded value of $20,000. They performed the audit procedures and determined that the audited amount of the sample totalled $19,000.
Required:
A) Calculate the projected likely misstatement (PLM) using (1) the average difference method and (2) the ratio method.
B) Evaluate the results of the calculation in part (A). Assume that Left and Right set the tolerable misstatement for accounts receivable at $25,000.

• A) Calculate the projected likely misstatement (PLM) using (1) the average difference method and (2) the ratio method.
• B) Evaluate the results of the calculation in part (A). Assume that Left and Right set the tolerable misstatement for accounts receivable at $25,000.

Comprehend the significance of neurobiological focus in diagnostic classification systems.

Recognize the ethical and practical implications of psychiatric diagnoses and the use of DSM-5 criteria.

Appreciate the diversity of therapeutic approaches and understand the complexities involved in diagnosing and treating psychological disorders.

Understand the effectiveness and assessment of psychological treatments.

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Definitions:

Japanese Economy

The economic system of Japan, characterized by its large industrial capacity, emphasis on technology, and robust export sector.

Exchange Rate

The value of one currency for the purpose of conversion to another currency.

U.S. Dollar

The official currency of the United States of America, widely used for domestic and international transactions.

Japanese Yen

The official currency of Japan, which is one of the most traded currencies in the world.