Exam IIA-CIA-Part2 Topic 3 Question 270 Discussion

Actual exam question for IIA's IIA-CIA-Part2 exam
Question #: 270
Topic #: 3
An internal auditor s examination of accounts receivable generates the following results:

What is the projected misstatement for the population if ratio estimation is used?

Suggested Answer: D Vote an answer

To determine the projected misstatement for the population using ratio estimation, the following calculation can be used:
Projected Misstatement=(Sample MisstatementSample Book Value)
×Population Book ValueProjected Misstatement=(Sample Book ValueSample Misstatement)
×Population Book Value
Given:
* Sample Misstatement = $420,000
* Sample Book Value = $12,000,000
* Population Book Value = $20,000,000
Projected Misstatement=(420,00012,000,000)×20,000,000Projected Misstatement=(12,000,000420,000)×20,
000,000
Projected Misstatement=0.035×20,000,000=700,000Projected Misstatement=0.035×20,000,000=700,000 Therefore, the projected misstatement is $700,000.
IIA Standards: 2320 - Analysis and Evaluation
IIA Practice Guide: Statistical Sampling

by Ellis at May 14, 2026, 12:01 PM

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