You Are Responsible for Planning the Audit of Fixed Asset

Essay

You are responsible for planning the audit of fixed asset additions for the BCS Corporation.Describe how you would select a sample to determine whether fixed asset additions have been recorded correctly.Prepare a sampling plan to describe how you will perform the test.The desired level of assurance is 95% (5% risk of incorrect acceptance).The ratio of estimated misstatement to tolerable misstatement is 0.05.The confidence factor is 3.31 from the table in the chapter.Tolerable misstatement is $50,000,000.The balance in the fixed asset additions account is $480,000,000.