Check my work 5 Part 2 of 3 5.88 points Required information Problem 9-50 [LO 9-9) [The following information applies to the questions displayed below) The auditors of Landi Corporation wish to use a structured approach to nonstatistical sampling to evaluate the reasonableness of the accounts receivable. Landi has 13.200 receivable accounts with a total book value of $2,495,000. The auditors have assessed the combined level of inherent and control risk at a moderate level and believe that their other substantive procedures are so limited as to require a maximum" risk assessment. After considering the overall audit plan, the auditors believe that the test's tolerable misstatement is $57,500. Use Figure 9-13 to determine the reliability factor Book Print References Problem 9-50 Part b Assuming the following results: Number of itens in sample Total audited value of sample itens Total book value of sample items 120 $18,600 $19,500 b.1. Use the ratio estimation method to calculate the projected misstatement of the population. (Do not round any division, Round your final answer to 2 decimal places.) Projected misstatement Check my work 07 Problem 9-50 Part b Part 2 of 3 Assuming the following results: 5.88 points Number of items in sample Total audited value of sample items Total book value of sample items 100 $18,600 $19,500 Book Print b-1. Use the ratio estimation method to calculate the projected misstatement of the population (Do not round any division. Round your final answer to 2 decimal places.) References Projected misstatement b2. Use the difference estimation method to calculate the projected misstatement of the population Projected misstatement Check my work 7 Problem 9-51 (LO 9-9) 5.88 points The auditors wish to test the valuation of accounts receivable in the audit of Kaplan Corporation. The client has 51,015,000 of total recorded receivables, composed of 1920 accounts. Use Elure 9-13 to determine the reliability factor. The auditors have decided to use structured nonstatistical sampling and have determined the following Tolerable misstatement Assesstent of inherent and control risk Risk related to other substantive procedures $56,080 Moderate Moderate Print References Required: a. Calculate the required sample size. (Roundup to the next whole number) Sample size b. Assume that the auditors have tested the sample and discovered the following three misstatements. The remainder of the sample had an average value (book and audited) of $545.00. Use the ratio estimation method to calculate the projected misstatement of the population. (Do not round any division, Round your final answer to the nearest dollar amount.) Audited Book Value Value $93 495 554 855 $108 562 7 of 16 nu Next > Check my work 7 Sample size 5.88 points Ook b. Assume that the auditors have tested the sample and discovered the following three misstatements. The remainder of the sample had an average value (book and audited) of $545.00. Use the ratio estimation method to calculate the projected misstatement of the population. (Do not round any division. Round your final answer to the nearest dollar amount.) Print References Book Value 593 495 855 Audited Value $108 554 502 Projected misstatement c. Use the results obtained in (b) to come to a conclusion about whether to accept" or "reject the population Accept Reject
