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

F Auditing Chapter 5\\ Statistical Problem NAIVE ! 3 Requirement (2\\ ACCOUNT Balance 8, 00 0, 00 0 Tolerable Misstatement $90 , 200 Expected Misstatement 150, 01010 Risk of Incorrect Acceptance $ 5 8 Sample SIZE 10 Sampling Interval 11 12 | | Requirement ( 6 ) 13 Book Value Audit Value* 14 15 Error Number 1 13, 50 0 240 0 15 Error Number 2 9, 00 0 Error Number 3 65, 000 18 Error Number $ 12010 540 21 22 23 24| Requirement ( [ ! 25 `Conclusion ! 25 27 82 2:0