Mt. Hood Furniture Pps Sampling Problem

(Mt. stumper FurniturePPS sampling problem) You have been designate the task of testing the accuracy of the final examination instrument compilation for Mt. Hood Furniture. You whitethorn assume that you have separately detect the inventorying and that you atomic number 18 satisfied that the inventory was accurately counted. However, you need to test that quantities were accurately transcribed to the final accumulation and rating of inventory and that the inventory is correctly priced and accumulated. The plug-in beginning on page 617 presents the analyseed make up ones mind associated with Mt. Hoods pricing and accumulation of all items in inventory.The book set will be given to you by your professor. You may assume that you have manageed the tests to determine the proper pricing for afflictive materials, mesh in process, and finished goods. The schoolchild should date that the auditor will normally guard this information only for the items included in the warni ng. Required 1. Identify the audit objectives that are accomplished by this test. 2. check sample size of it base on the interest audit judgments. a. Tolerable misstatement is assessed at $325,000. b. The luck of false acceptance is assessed at 37 percent. c. Anticipated misstatement is assessed at $100,000. . Develop a scenario that is consistent with setting the risk of incorrect acceptance at 37 percent. 4. carry a PPS sample of the above inventory population using the sample size determined in (2) above. 5. Explain the tests that you would perform to test the correctness of pricing of raw materials, work in progress, and finished goods. (The student may wish to consult Chapter 16. ) 6. Determine the amount of projected population misstatement based on your sample. 7. Considering your quantitative and qualitative results, go against a statistical conclusion and an audit conclusion based on your sample.