Johnson Certified Public Accountant (CPA) intends to use monetary unit sampling. He has properly selected and audited a sample of 100 accounts receivable from his client's population of 3000 accounts. He calculated a sampling interval of $5,000 and the tolerable misstatement for the account is $40.000. He has the following table available: Number of Mistatements 10X Risk of Incorrect Acceptance 1x SX 4.61 3.00 2.31 6.64 4.75 3.89 8.41 6.30 5.33 10.05 7.76 6.69 11.61 9.16 8.00 2 4 Williams also recalls that "basic precision is equal to the appropriate reliability factor multiplied times the sampling interval. He wishes to accept a risk of incorrect acceptance of 10 percent He found that 97 of the 100 accounts in the sample were properly calculated. However, the following three errors existed Book Value $ 50 400 8,000 Audited Value $ 49 300 6,000 a Calculate the projected misstatement b. Calculate the basic precision c. Calculate the incremental allowance d. Calculate the upper limit on misstatement e Explain how the auditors would consider the results calculated above