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mework - Fall 2019 ACCT 323 You are the auditor of Jexel, an auto air-conditioner service and repair company, and you have decided to use

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mework - Fall 2019 ACCT 323 You are the auditor of Jexel, an auto air-conditioner service and repair company, and you have decided to use the mean-per-unit method to test the existence and gross valuation of recorded accounts receivable. The client's records include 9,600 accounts with a total book value of $1,290,000. You decide to use tolerable misstatement of $177,000, an incorrect acceptance risk of 10 percent, and an incorrect rejection risk of 50 percent. Using Excel, you estimated the standard deviation of the population as $30. Use Figure 9-8 to obtain the incorrect acceptance and rejection coefficients. Required: a. Determine the sample size. b. Assume you tested the sample and got the following results: The mean audited value of the accounts sampled was $134. Assuming that the standard deviation of the sample's oudited value is also $30, what is the projected misstatement for the population? C. Assuming that the standard deviation of the sample's audited value is $25, what is the projected misstatement for the population? Required A Required B Required Determine the sample size. (Roundup to the next whole number.) Sample size Required B > mework - Fall 2019 ACCT 323 You are the auditor of Jexel, an auto air-conditioner service and repair company, and you have decided to use the mean-per-unit method to test the existence and gross valuation of recorded accounts receivable. The client's records include 9,600 accounts with a total book value of $1,290,000. You decide to use tolerable misstatement of $177,000, an incorrect acceptance risk of 10 percent, and an incorrect rejection risk of 50 percent. Using Excel, you estimated the standard deviation of the population as $30. Use Figure 9-8 to obtain the incorrect acceptance and rejection coefficients. Required: a. Determine the sample size. b. Assume you tested the sample and got the following results: The mean audited value of the accounts sampled was $134. Assuming that the standard deviation of the sample's oudited value is also $30, what is the projected misstatement for the population? C. Assuming that the standard deviation of the sample's audited value is $25, what is the projected misstatement for the population? Required A Required B Required Determine the sample size. (Roundup to the next whole number.) Sample size Required B >

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