An auditor is determining the appropriate sample size for testing inventory valuation using MUS. The population has

Question:

An auditor is determining the appropriate sample size for testing inventory valuation using MUS. The population has 2,620 inventory items valued at $12,625,000. The tolerable misstatement for both understatements and overstatements is $500,000 at a 10% ARIA. No misstatements are expected in the population. Calculate the preliminary sample size using a 100% average misstatement assumption.