Which of the following is the correct ratio to use in calculating the dollar value of the population if the auditor is using ratio estimation?
Number of Items -
Audited Value -
Carrying Amount -
Sample -
300
$500,000
$480,000
Population -
3,000
$5,000,000
To calculate the ratio for ratio estimation, divide the audited value by the carrying amount. This gives us $500,000 / $480,000 which equals approximately 1.04. Therefore, the correct ratio to use in calculating the dollar value of the population is 1.04.
I suppose the right format of the question data is: Number of Items: 300 Audited Value: $500,000 Carrying Amount: $480,000 Sample: 3,000 Population: $5,000,000 Audited Value/Carrying amunt is the ratio
Thys type of formatting issue exists in many questions
Question not clear (formatting problem?)