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Can I please have the two Variable Sampling Problems completed? Please take note to the requirements for both that I highlighted in yellow for you.
Variables Sampling Problem 1 You have been charged to perform a test of controls over Accounts Receivable. You have selected the PPS sampling method because it automatically results in a stratified sample. You computed the sample size, using the risk of incorrect acceptance, the total recorded amount of receivables, and the number of misstated accounts allowed, and divided the total recorded book amount of receivables by the sample size in order to determine a sampling interval. You have calculated the sample size to be 60 and the sampling interval to be $10,000. Given this, only 50 different accounts were selected, because several of the accounts were so large that the sampling interval caused each of them to be selected twice. Given the results, you sent 50 confirmations. Three of the selected accounts in your sample had balances under $20, therefore, you decided not to send them confirmations. Three accounts had negative balances. You substituted the three largest accounts that had not been selected in the sample. Each of these accounts had a balance greater than $7,000. The results of the confirmations revealed two differences. One difference showed an audit amount of $3,000 but the amount had been recorded at $4,000. Therefore, you projected this to be a $1,000 misstatement. The other account had an audit amount of $2,000 but had been recorded at $1,900. You did not count the $100 difference because the purpose the test was to detect overstatements. As a result of this assumption, your valuation states that the Accounts Receivable balance was not overstated because the projected misstatements were less than the allowance for sampling risk. Requirement: Discussed each incorrect assumption, statement and/or inappropriate application of the sampling procedures that you used. Variables Sampling Problem 2 Assume your firm has been hired to audit a small wholly owned subsidiary of CBA, (Dander, Inc.). Your first assignment is to estimate the value…