Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PLEASE letter your answers. If your answers are not lettered property, you will not receive fu tolerable misstatement at $120,000, and expected misstatement at
PLEASE letter your answers. If your answers are not lettered property, you will not receive fu tolerable misstatement at $120,000, and expected misstatement at $36,000 You are planning to use monetary unit sampling to evaluate accounts receivable for Eina Company Activatie has a balance of $3,000,000. You have assessed risk of incomect acceptance at 5% e. Determine the sample stre and the sampling interval (point) b. Calculate the projected mistelement assuming you found the following differences (4 poin) Account Recorded Value Audit value Difference 102 235 $2,000 3,200 $600 1.820 $1,400 1,280 c. Assume the incremental allowance for sampling risk is $17,880. Determine the basic allowance for sampling risk AND the upper limit on misstatement. (3 points) d. What is your conclusion based on the sample? How did you determine that? (4 points)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started