Question
Monetary Unit Sampling: Abby Venter, CA intends to use Monetary Unit sampling. She wishes to properly select and audited a sample from the accounts receivable
Monetary Unit Sampling: Abby Venter, CA intends to use Monetary Unit sampling. She wishes to properly select and audited a sample from the accounts receivable from her client's population of 2000 accounts with a value of $100,000. The tolerable misstatement for the account is $10,000 and Jane is convinced based on W previous experience that estimated misstatement would be $3000. Based on a low level of acceptable audit risk for this client and based on moderate to high assessed levels of inherent risk and control risk for accounts receivable, your acceptable risk of incorrect acceptance (ARIA) for accounts receivable is 5 %. The random for the sample start is $ 400 Required: a) Calculate the appropriate sample size for the account. b) Determine the sample interval. c) Identify the first two values in the band that you would consider drawing your sample from?
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