Prepare tables like the one in Exhibit DC 10B-2 under different assumptions for the three combinations given
Question:
Prepare tables like the one in Exhibit DC 10B-2 under different assumptions for the three combinations given below. Calculate monetary-unit sample sizes using the Poisson risk factors for a dollar value of the balance of $300,000 and a tolerable misstatement of $10,000. Assume zero expected misstatement. (These are the recorded amount and tolerable misstatement underlying Exhibit DC 10B-2.) Round your RIAs to two decimal places to use the Poisson risk factor tables.
1. AR = 0.10, IR = 1.00, AP = 1.00
2. AR = 0.05, IR = 0.50, AP = 1.00
3. AR = 0.05, IR = 1.00, AP = 0.50
Required:
Explain the differences or similarities among the different or same sample sizes produced by your calculations.
Step by Step Answer:
Auditing An International Approach
ISBN: 978-1259087462
7th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley