Assume that your audit team has established the following parameters for the examination of ELM's sales transactions: Risk of incorrect acceptance Tolerable misstatement Expected misstatement 10% $311,711 (or 10% of the recorded balance of the transactions) $58,446 (or 1.5% of the recorded balance of the transactions) Required: Using IDEA, answer the following questions by supplying the required information. (Provide your answers exactly as they appear in IDEA.) a. Use IDEA to determine the necessary sample size, given the above parameters. b. What is the sampling interval? Show how the sampling interval can be arithmetically determined from the sample size and the population size. c. Assuming a random start of 5,678, use IDEA to extract sample items from the population. List both the order numbers and amounts for the transactions associated with the sample items selected by your team for examination. (Be sure to use "fixed interval extraction" and "high values in database" as options.) d. Based on the items selected from the population, does it appear that monetary unit sampling selects larger dollars items for examination? Provide the basis for your answer. e. Why does the number of transactions extracted in parte differ from the sample size? Is this a concern? Assume that your audit team has established the following parameters for the examination of ELM's sales transactions: Risk of incorrect acceptance Tolerable misstatement Expected misstatement 10% $311,711 (or 10% of the recorded balance of the transactions) $58,446 (or 1.5% of the recorded balance of the transactions) Required: Using IDEA, answer the following questions by supplying the required information. (Provide your answers exactly as they appear in IDEA.) a. Use IDEA to determine the necessary sample size, given the above parameters. b. What is the sampling interval? Show how the sampling interval can be arithmetically determined from the sample size and the population size. c. Assuming a random start of 5,678, use IDEA to extract sample items from the population. List both the order numbers and amounts for the transactions associated with the sample items selected by your team for examination. (Be sure to use "fixed interval extraction" and "high values in database" as options.) d. Based on the items selected from the population, does it appear that monetary unit sampling selects larger dollars items for examination? Provide the basis for your answer. e. Why does the number of transactions extracted in parte differ from the sample size? Is this a concern
