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Please help!!! (Objective 17-2) You are planning to use nonstatistical sampling to evaluate the results of accounts receivable confirmation for the Meridian Company. You have
Please help!!!
(Objective 17-2) You are planning to use nonstatistical sampling to evaluate the results of accounts receivable confirmation for the Meridian Company. You have already performed tests of controls for sales, sales returns and allowances, and cash receipts, and they are considered excellent. Because of the quality of the controls, you decide to use an acceptable risk of incorrect acceptance of 10 percent, rather than a lower percentage. There are 3,300 accounts receivable with a gross value of $3,100,000. The accounts are similar in size and will be treated as a single stratum./ Tolerable misstatement for this test of accounts receivable confirmations is $200,000. Required a. Calculate the required sample size. Assume your firm uses the following nonstatistical formula to determine sample size: Sample size Population Recorded AmountStep by Step Solution
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