1- Corp X presents Accounts Receivable on its Balance Sheet at $10,000,000. You test 40 accounts -per our sample size requirements-and find the following:

There are 500 total accounts.

Management balance of 40 accounts= $900,000

Audit results from testing 40 accounts results in Accounts receivable of$820,000

The auditors want to test the balance of Accounts Receivable using the Monetary Unit Method and wants to be 90% confident that the reported balance is within $50,000 of the real balance.

Based on these facts, is the Accounts Receivable amount materially correct?

2- Name 2 reasons why an unmodified opinion may be incorrect?

3- Name 3 ARP's one may use to test the income statement presented amounts?