Daily and Johnson, CPAs were conducting the audit of GarnerTool Supply for the year ended December 31. Cindy Steward, senior-in-charge of the audit, plans to use MUS to audit Garner's inventory account. The balance in the inventory account at December 31 was $8,000,000.

Requirements:

a) Based on the information in the spreadsheet, calculate the requiredMUS sample size and sampling interval

b) Steve Brents, staff accountant, used the sample items selected in part (a) and performed the audit procedures listed in the inventory audit program. He noted the misstatements show in the spreadsheet in part (b). Using the information, calculate the upper misstatement limit.

c) Based on the results in part (b) What is the conclusion that Steve Brents should make concerning the inventory account balance?

Please show excel equations used

1Auditing Chapter 9 2 Statistical Problem NAME 3 Requirement faj 4 Account Balalnce 5 Tolerable Misstatement 6 Expected Misstatement 7 Risk of Incorrect Acceptance 8,000,000 400,000 160,000 5% 9 Sample Size 10 Sampling Interval 12 Requirement (b 13 14 Book Value Audit Value 15 16 17 Error Number 1 Error Number 2 Error Number 3 Error Number 4 2400 6000 13,500 9,000 65,000 1200 18 19 20 21 640 23 24 Requirement (c) 25 Conclusion 26 27 28 29