a. Sample Size b. Sampling Interval 411,765 c. Upper Misstatement Limit: \begin{tabular}{|l|l|l|l|l|} \hline Error \# & Book Value & Audit Value & Difference & Tainting Factor \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|l|l|} \hline Error n & Tainting Factor & \begin{tabular}{c} Sampling \\ Interval \end{tabular} & \begin{tabular}{c} Projected \\ Misstatement \end{tabular} & \begin{tabular}{c} Misstatement \\ Factor \end{tabular} & \begin{tabular}{c} Upper \\ Misstatement \\ Limit \end{tabular} \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline \end{tabular} Monetary-Unit-Sampling Problem You work for a top-notch audit firm, Foreman \& Griswold LLP. You have been assigned to audit accounts receivable at FMG Sporting Goods. You will be auditing accounts receivable using the monetary unit sampling method. The account balance is $7,000,000. - Tolerable misstatement =$420,000 - Expected misstatement =$52,500 - Risk of incorrect acceptance =5% a. Calculate the sample size. b. Calculate the sampling interval. c. You have identified the following errors during your testing. Calculate the upper misstatement limit. d. After assessing the test results, what is your conclusion? a. Sample Size b. Sampling Interval 411,765 c. Upper Misstatement Limit: \begin{tabular}{|l|l|l|l|l|} \hline Error \# & Book Value & Audit Value & Difference & Tainting Factor \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|l|l|} \hline Error n & Tainting Factor & \begin{tabular}{c} Sampling \\ Interval \end{tabular} & \begin{tabular}{c} Projected \\ Misstatement \end{tabular} & \begin{tabular}{c} Misstatement \\ Factor \end{tabular} & \begin{tabular}{c} Upper \\ Misstatement \\ Limit \end{tabular} \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline \end{tabular} Monetary-Unit-Sampling Problem You work for a top-notch audit firm, Foreman \& Griswold LLP. You have been assigned to audit accounts receivable at FMG Sporting Goods. You will be auditing accounts receivable using the monetary unit sampling method. The account balance is $7,000,000. - Tolerable misstatement =$420,000 - Expected misstatement =$52,500 - Risk of incorrect acceptance =5% a. Calculate the sample size. b. Calculate the sampling interval. c. You have identified the following errors during your testing. Calculate the upper misstatement limit. d. After assessing the test results, what is your conclusion
