9-21 Edwards has devided to use monetary-unit sampling in the andit of an cutity's acoounts recehalle balance. Frw, if any, misetatements of wecount balance owentatement are erpected. Required: a. Identify the advantages of using monetary-unit sampling over classical variables sampling. b. Calculate the sample size and the sampling interval Edwards should ase for the following information: c. Calculate the UML assuming that the follonsing three misstatements were discovered in testing based on the MUs sample computed in part (b). Page s28. 9-22. The firm of Le and Lysius was coeducties the andit of Coomes Molding Corporation for the fiscal year ended October 3l. Michetle Le, the partner is charge of the audis, decides that MtUS is the appropriate sampling technique to tuse in order to audit Coomes' imventory acevuet. The bulance in the inventory at October 31 was $4,250,000. Michelle has established the folsonsieg: risk of incocrect acceptance =5% (Le., the desired confidence level of 954 ), tolerable misstatement =$212,500, and expected misstatement = $63.750 Required a. Calculate the sample size and sampling interval. b. Hon Zha, staff aceountant, perfommed the and it procedures listed in the inventory audit program for each sample item. Using the sample size compated in part (a), calculate the upper lamit on misstatement based on the following misstatements. What should Hon conclude about Coomes' inventery accotnt? 9-23 MrMellen and 3talikas, CPhs, were confucting the aadit of Cusirk Machine Tool Complany for the year ended December 31.1 lan Sigmand, seniur-in-charge of the andit, plans to wer MUS 10 andit Cavick s imetatory actount. The balance at December 31 was spoo0,000. Required: a. Based on the following informution, compute the required MUS sample size: Tolerable misstatement =$360,000 Fxpected misstatement a $90,000 Risk, of incotrect acceptance =5k b. Nancy Van Relt, staff aceoantant, usced the sample items selected in part (a) and performed the andit procedares listed in the inventory abdit program. She notes the following misstatements: Using this information, calculate the upper misstasemeat limit. What conchasios should Van Pelt make concerning the izventary? c. Asstame that, if addition to the fotar misstatements identified in part (b), Van Pelt had identified the following two understatements: Calculate the net projectod population micstatement. 9-21 Edwards has devided to use monetary-unit sampling in the andit of an cutity's acoounts recehalle balance. Frw, if any, misetatements of wecount balance owentatement are erpected. Required: a. Identify the advantages of using monetary-unit sampling over classical variables sampling. b. Calculate the sample size and the sampling interval Edwards should ase for the following information: c. Calculate the UML assuming that the follonsing three misstatements were discovered in testing based on the MUs sample computed in part (b). Page s28. 9-22. The firm of Le and Lysius was coeducties the andit of Coomes Molding Corporation for the fiscal year ended October 3l. Michetle Le, the partner is charge of the audis, decides that MtUS is the appropriate sampling technique to tuse in order to audit Coomes' imventory acevuet. The bulance in the inventory at October 31 was $4,250,000. Michelle has established the folsonsieg: risk of incocrect acceptance =5% (Le., the desired confidence level of 954 ), tolerable misstatement =$212,500, and expected misstatement = $63.750 Required a. Calculate the sample size and sampling interval. b. Hon Zha, staff aceountant, perfommed the and it procedures listed in the inventory audit program for each sample item. Using the sample size compated in part (a), calculate the upper lamit on misstatement based on the following misstatements. What should Hon conclude about Coomes' inventery accotnt? 9-23 MrMellen and 3talikas, CPhs, were confucting the aadit of Cusirk Machine Tool Complany for the year ended December 31.1 lan Sigmand, seniur-in-charge of the andit, plans to wer MUS 10 andit Cavick s imetatory actount. The balance at December 31 was spoo0,000. Required: a. Based on the following informution, compute the required MUS sample size: Tolerable misstatement =$360,000 Fxpected misstatement a $90,000 Risk, of incotrect acceptance =5k b. Nancy Van Relt, staff aceoantant, usced the sample items selected in part (a) and performed the andit procedares listed in the inventory abdit program. She notes the following misstatements: Using this information, calculate the upper misstasemeat limit. What conchasios should Van Pelt make concerning the izventary? c. Asstame that, if addition to the fotar misstatements identified in part (b), Van Pelt had identified the following two understatements: Calculate the net projectod population micstatement
