Data Analytics Case Edwards has decided to use monetary unit sampling (MUS) in the audit of a client's accounts receivable balance. Few, if any, misstatements of the account balance are expected. Use the MUS Excel template (THE NEXT FILE IN THIS MODULE) to complete following requirements. Required: a. Identify the advantages of using MUS over classical variables sampling. b. Calculate the sampling interval and the sample size Edwards should use given the following information: Tolerable misstatement S 50.000 Risk of incorrect acceptance 596 Estimated misstatement $ 15,000 Recorded amount of accounts receivable $3,000,000 What is the effect on sample size of changing the risk of incorrect acceptance to 1967 c. Using the 5% Risk of incorrect acceptance calculate the total projected misstatement if the following three errors were discovered in MUS: Misstatement Book Value Audited Value 1 $ 400 $ 320 2 500 0 3 15.000 12.500 e. Calculate basic precision and incremental allowance. Calculate the upper limit on misstatements. Will you accept or reject the account as materially correct? Submit your completed Excel spreadsheet and word document answering the above questions and submit them in the Submission File titled Data Analytics Case. Data Analytics Case Edwards has decided to use monetary unit sampling (MUS) in the audit of a client's accounts receivable balance. Few, if any, misstatements of the account balance are expected. Use the MUS Excel template (THE NEXT FILE IN THIS MODULE) to complete following requirements. Required: a. Identify the advantages of using MUS over classical variables sampling. b. Calculate the sampling interval and the sample size Edwards should use given the following information: Tolerable misstatement S 50,000 Risk of incorrect acceptance 5% Estimated misstatement S 15,000 Recorded amount of accounts receivable $3,000,000 What is the effect on sample size of changing the risk of incorrect acceptance to 1%? c. Using the 5% Risk of incorrect acceptance, calculate the total projected misstatement if the following three errors were discovered in MUS: Misstatement Book Value Audited Value 1 $ 400 S 320 500 0 15,000 12,500 WN - d. Calculate basic precision and incremental allowance. Calculate the upper limit on misstatements. f. Will you accept or reject the account as materially correct? Submit your completed Excel spreadsheet and word document answering the above questions and submit them in the Submission File titled Data Analytics Case. 5toladde mistokunut sorod 50,000 : 3,000,000) es Data Analytics Case Edwards has decided to use monetary unit sampling (MUS) in the audit of a client's accounts receivable balance. Few, if any, misstatements of the account balance are expected. Use the MUS Excel template (THE NEXT FILE IN THIS MODULE) to complete following requirements. Required: a. Identify the advantages of using MUS over classical variables sampling. b. Calculate the sampling interval and the sample size Edwards should use given the following information: Tolerable misstatement S 50.000 Risk of incorrect acceptance 596 Estimated misstatement $ 15,000 Recorded amount of accounts receivable $3,000,000 What is the effect on sample size of changing the risk of incorrect acceptance to 1967 c. Using the 5% Risk of incorrect acceptance calculate the total projected misstatement if the following three errors were discovered in MUS: Misstatement Book Value Audited Value 1 $ 400 $ 320 2 500 0 3 15.000 12.500 e. Calculate basic precision and incremental allowance. Calculate the upper limit on misstatements. Will you accept or reject the account as materially correct? Submit your completed Excel spreadsheet and word document answering the above questions and submit them in the Submission File titled Data Analytics Case. Data Analytics Case Edwards has decided to use monetary unit sampling (MUS) in the audit of a client's accounts receivable balance. Few, if any, misstatements of the account balance are expected. Use the MUS Excel template (THE NEXT FILE IN THIS MODULE) to complete following requirements. Required: a. Identify the advantages of using MUS over classical variables sampling. b. Calculate the sampling interval and the sample size Edwards should use given the following information: Tolerable misstatement S 50,000 Risk of incorrect acceptance 5% Estimated misstatement S 15,000 Recorded amount of accounts receivable $3,000,000 What is the effect on sample size of changing the risk of incorrect acceptance to 1%? c. Using the 5% Risk of incorrect acceptance, calculate the total projected misstatement if the following three errors were discovered in MUS: Misstatement Book Value Audited Value 1 $ 400 S 320 500 0 15,000 12,500 WN - d. Calculate basic precision and incremental allowance. Calculate the upper limit on misstatements. f. Will you accept or reject the account as materially correct? Submit your completed Excel spreadsheet and word document answering the above questions and submit them in the Submission File titled Data Analytics Case. 5toladde mistokunut sorod 50,000 : 3,000,000) es
