When to Extrapolate a Misstatement?
Extrapolating Results (When 5 or More Deviations Are Found) If the Test Is a Variables Sample and Five or More Errors Are Found, the Auditor Must Extrapolate...
What does extrapolate mean in audit?
What is Extrapolation? Extrapolation is the process of extending a trend into the future, or of applying the results of a sample to an entire population. ... Or an auditor could extrapolate a 2% invoice error rate from a sample to the entire population of invoices.
How do you extrapolate an error in auditing?
How is audit extrapolation error calculated? EXTRAPOLATING RESULTS (when 5 or more deviations are found) To calculate the POE, take the dollar value of the deviations (or other sample result), divide by the dollar value of the total sample. Then multiply that POE times the dollar value of the population.
Maya is a hardware enthusiast who tests and reviews smart home devices, smartphones, wearables, and audio gear. She focuses on practical consumer value and build quality.
