Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Data relevant to the December 31, 20X1 audit of accounts receivable in two of your clients is presented in the tabulation below. Company X Company
Data relevant to the December 31, 20X1 audit of accounts receivable in two of your clients is presented in the tabulation below. Company X Company Y Clients bv $90,000.00 $200,000.00 Population size 1000 2000 Desired risk of incorrect acceptance 20% 30% Desired risk of incorrect rejection 10% 5% Tolerable misstatement $9,000.00 $10,000.00 Estimated Standard deviation $50.00 $25.00 a. Determine sample size for each company using MPU estimation sampling. b. Assume the total audited value of the Company X sample is $13600 and the standard deviation is $52. Evaluate the sample results. c. Assume the average of the sample audit values in the Company Y sample is $90 and the standard deviation is $30. Evaluate the sample results
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started