Question
I need help answering #6, 7 and 8 Green Pastures Cheese, LLC Audit Sample Plan for Confirmation of Accounts Receivable 12/31/-- B-9 WL 1/10/-- Objective:
I need help answering #6, 7 and 8
Green Pastures Cheese, LLC Audit Sample Plan for Confirmation of Accounts Receivable 12/31/-- | B-9 WL 1/10/-- |
Objective: Establish the existence and gross valuation of accounts receivable and occurrence of sales by confirmation. | |
Population: The trial balance of accounts receivable at 12/31/--, with a total book value of $ 269,000 | |
Definition of Misstatement: Any amount that is determined not to be a valid account receivable. | |
Sampling Technique: Probability-proportionate-to-size | |
Sampling Parameters: | |
Tolerable Misstatement: | |
Total materiality as indicated in the audit plan | $8,000 |
Less: Estimate of undetected misstatements (50% of overall materiality) | $4,000 |
Tolerable misstatement for this test | $4,000 |
Acceptable Level of Risk of Incorrect Acceptance | 4.6% |
Acceptable Level of Risk of Incorrect Rejection | 1.0% |
Population Size (Total number of sampling units | 250 |
Estimated Standard Deviation | 11.25 |
Determine the Incorrect Acceptance Coefficient |
|
Determine the Incorrect Rejection Coefficient |
|
Determine the Sample Size (rounded to the next highest round number) SHOW YOUR WORK |
|
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