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Monetary unit sampling excel template

21/04/2021 Client: muhammad11 Deadline: 2 Day

Name: _________________________________________ Date: _________________________ Missouri State University, School of Accountancy AUDITING ACC 553 Fall 2018 IDEA - Assignment 3 (See Point Discussion Below) This third assignment will continue with your understanding of the IDEA software in order to continue completing the remaining assignments that will be required in the course. Please recall that these assignments are to be completed individually, but I am more than willing to help you as needed. This assignment corresponds to Chapters 9 through 11, and Chapter 16. In this assignment, the only required portion is related to Chapter 9. As stated in the course syllabus, you are required to do two other chapters other than the assigned chapters in order to get full credit on the IDEA Software Activities. It is possible that you have already completed these remaining 2 assignments in the IDEA – Assignment 2. Please note that you are required to complete the two additional chapters before you complete additional chapters for extra credit. In other words, you cannot select chapters for extra credit before you complete your requirement. In the table below, for chapters 10, 11, and 16, please mark the box (i.e., with an “X”) related to whether you have elected not do the chapter, are doing it as one of your required assignments, or have already completed your required chapters and are doing it for extra credit: table Chapter (hyperlinked - hold down the CTRL key and click on a link below) Chapter 9 Chapter 10 Chapter 11 Chapter 16 Requirement Required Not Required – Optional (either 1 of 2 Additional Required or Extra Credit) Not Required – Optional (either 1 of 2 Additional Required or Extra Credit) Not Required – Optional (either 1 of 2 Additional Required or Extra Credit) Possible Points 20 10 (if 1 of 2 required); 5 (if extra credit) 10 (if 1 of 2 required); 5 (if extra credit) 10 (if 1 of 2 required); 5 (if extra credit) Elected Doing as Doing as Not to 1 of 2 Extra Do Required Credit Each of the chapters associated with this assignment are linked in the above table. Your deliverable is to turn in this first page of the document (with the above table), along with the pages associated with the chapters that you complete. You do not have to turn in the pages for those chapters that you elect not to complete. Space has been provided for you to provide these answers in each of the chapters, but if you need to provide more that is okay. You may also complete and turn in a hand-written assignment, as long as it is clearly legible. Chapter 9 IDEA Problems Return to Table There is technical assistance available for the educational version of IDEA, please contact technical support: 1888-641-2800 Option#4 or email the help desk at HelpDesk@audimation.com (Note: Please submit your answers to the following exercises and problems to your instructor in this same document.) Messier/Glover/Prawitt End-of-Chapter 9, IDEA Problems Please download the Roger Company IDEA files, if you haven’t already. See instructions for obtaining the Roger Company files in the IDEA – Assignment 2 document. Problem 1 Determine an appropriate sample size to test the Roger Company AR table using monetary unit sampling using the following inputs: 1. Open the Roger Company Accounts_Receivable file 2. In the Analysis tab, Sample group, select Plan under Monetary Unit to open the Monetary Unit Sampling – Plan window. 3. The Use values from the database field should be checked, and should indicate to use AMOUNT 4. Input the following: • Confidence Level (%) is 75 • Tolerable error is 30,000 • Expected Error is 1,000 • Value of Sampled Population is already completed and it represents the sum of the AMOUMT field 5. Click on Estimate What is the computed sample size? Answer: When would an auditor be comfortable using 75% confidence for a substantive test of accounts receivable? Answer: ©The McGraw-Hill Companies, Inc., 2016 IDEA Assignments IDEA-2 Problem 2 In addition to determining sample size, IDEA can also select a random sample for you. Draw a sample of Accounts Receivable transactions from the Roger Company Accounts_Receivable file. 1. From the Sample group, select Monetary Unit and then click Extract to open the Monetary Unit Sampling – Extract window. 2. Set the Random starting point at 115 3. Set the Sample interval at 33,000 4. Name the File name as “AR Monetary Sample” 5. The Numeric field to sample should be AMOUNT, leave the other settings and click on OK How many records are included in the sample? Answer: Provide a print-screen of your sample (at least through the “CUSTOMER_NUMBER” column) below: ©The McGraw-Hill Companies, Inc., 2016 IDEA Assignments IDEA-3 Problem 3 For the sample selected in Problem 2, suppose the items were tested and the following two errors were observed. INVOICE_NUMBER 832119 832329 AMOUNT 1,276.29 4,102.43 AUDIT_AMT 1,076.29 4,002.43 DIFFERENCE 200 100 With the AR Monetary Sample file created in Problem 2 open, find the “AUDIT_AMT” column next to the “AMOUNT” column and input the AUDIT_AMT for the two invoices listed above (Ignore any error messages and accept the edits to the file). From the Sample group, select Monetary Unit and then click Evaluate and select Cell and Classical PPS to open the Monetary Unit Sampling – Cell and Classical PPS Evaluation window. If not already done so, change Confidence level (%) to 75. Click OK to view the evaluation results.

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