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Keith, CPA, used monetary-unit sampling (MUS), sometimes called probability- proportional-to-size sampling, in the audit of a client's accounts receivable. Other information for the current year's
Keith, CPA, used monetary-unit sampling (MUS), sometimes called probability- proportional-to-size sampling, in the audit of a client's accounts receivable. Other information for the current year's audit is outlined below: Tolerable misstatement Recorded amount of accounts receivable $ 20,000 $200,000 Keith found the three misstatements listed below. Given this information, calculate the total projected misstatement. Enter the appropriate amounts in the associated cells in the table. Enter answers in the column Tainting % as a percentage. If no amount should be calculated, enter a zero (0) or leave the cell blank. Recorded amount Audit amount Tainting % Sampling interval Projected misstatement 1st Error $ 400 $ 320 123 $1,000 123 123 123 2nd Error $ 500 $ 0 $1,000 123 123 3rd Error $3,000 $2,500 $1,000 Total Projected 123
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