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The following information results from a nonstatistical sampling routine used fo

ID: 2370376 • Letter: T

Question

The following information results from a nonstatistical sampling routine used for a confirmation of accounts receivable. What is the estimate of the total misstatement?


Population


ISI (Top Stratum) Number: 7 Amount: 700,000

Stratum 1 Number: 74 Amount: 750,000

Stratum 2 Number: 212 Amount: 250,000

Total Number: 292 Amount: 1,700,000


Sample

ISI (Top Stratum) Number: 7 Amount: 700,000 Misstatement: 2,200

Stratum 1 Number: 10 Amount: 100,000 Misstatement: 1,000

Stratum 2 Number: 10 Amount: 12,000 Misstatement: 1,200

Total Number: 27 Amount: 812,000 Misstatement: 4,400


What is your best estimate of the total projected misstatement? Show your work.

Explanation / Answer

ISI (Top Stratum) Number: 7 Amount: 700,000 Misstatement 2200

Stratum 1 Number: 74 Amount: 750,000 Misstatement 1013.5

Stratum 2 Number: 212 Amount: 250,000 Misstatement 117.9

Total Number: 292 Amount: 1,700,000 Misstatement 3331.4