Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Emerson Washburn is examining the accounts receivable of Anaheim Company and has decided to use MUS to select a sample of customer accounts for confirmation.

Emerson Washburn is examining the accounts receivable of Anaheim Company and has decided to use MUS to select a sample of customer accounts for confirmation. Anaheim's accounts receivable totaled $3,500,000 and comprised 3,000 different customer accounts ranging in amount from $200 to $125,000. Based on the characteristics of the population and acceptable risk of incorrect acceptance, tolerable misstatement, and expected misstatement, Washburn determined a sample size of 20 accounts.

Required:

Without making any calculations, briefly describe how Washburn would select a sample of customer accounts from the population of accounts receivable.

If Washburn selected a random starting point of 172,600, what are the first four dollar amounts that would be selected? How would Washburn proceed to evaluate these items?

What would Washburn do if two of the dollar amounts selected were contained within the same customer account?

Anaheim maintains its accounts receivable balances in a computerized file that has the following information: (1) customer number, (2) customer name, (3) total account balance, and (4) account status (current versus past due). For each of these elements, comment on any procedures that Washburn should perform before selecting the sample if the population were arranged based on these elements (for example, arranged numerically by customer number, alphabetically by customer name).

Your written response paper should be 3-4 pages in length.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Assurance And Auditing

Authors: Thomas Nelson

1st Edition

0170111342, 978-0170111348

More Books

Students also viewed these Accounting questions