AUI3702 EXAM PACK.

AUI3702 EXAM PACK. Establish the objectives of the sampling plan -define the extent and composition of the population -select a sampling method -determine the sample size to be taken -evaluate and report results 3.2. Calculate sample size Sample size = total value of population/J Factor = 500 000/10869,6 = 46.10 Calculation of J Factor = precision Reliability factor =(0,05 x 500 000)/2.3 =10869,6 Sample interval = total value of PP/Sample size 500 000/46,10 =10845,99 3.5. Ratio analysis will be used by an auditor when performing analytical procedures. During the performance stage an auditor when auditing transactions and account balances, for different classes of transactions NB Analytical procedures are classified as substantive procedures. 3.6. Calculate the following ratios S - The study-notes marketplace Downloaded by: mmatshephod | Distribution of this document is illegal S - The study-notes marketplace DEE 7 3.6.1 Inventory turnover rate /ratio = cost sales/Average invent =(21 000/1100 000) + = 20 There is a remarkable improvement 3.6.3. Gross profit Ratio 2014 (Gross profit)/Sale X 100 = – x 100 =25% 2013 –( X100) =26,67% The gross profit percentage deteriorated during the current year this is attributable to a decline in sales in relation to increase in cost of sales. Q3.7 The short comings on the working Paper -the letter is not dated, does not show dates when it was prepared -it does not contain names of the preparers and reviewers -dates of the reviews -there is no isolation of responsibility no signatures use of signatures by the preparers -it doesn‟t contain the subject matter S - The study-notes marketplace Downloaded by: mmatshephod | Distribution of this document is illegal S - The study-notes marketplace DEE 7 It does not contain significant deficiencies internal controls and the possible effects to the entity -it does not contain audit procedures used to gather sufficient and appropriate evidence. Q 4. Inspect the requisition forms and purchases order for the buyer signature confirms authorization. Inspect the purchases orders once the requisition to confirms whether the goods are of as type used by the company (ii). Select a sample of supporting documentations and trace for orders with material amounts in the purchases journal and the creditors control in the general ledger and trial balance -Inspect the goods received, note last number and confirm whether is it lower than date number (ii) Select a sample of purchase orders and recalculate costs, extensions discounts and vat extensions.