Question
Population Size = 10,000 items Book value = $8,000,000 Tolerable misstatement = $300,000 Sample (mean-per-unit estimation method results) Size = 100 items. Average book value
Population
Size = 10,000 items
Book value = $8,000,000
Tolerable misstatement = $300,000
Sample (mean-per-unit estimation method results)
Size = 100 items.
Average book value of sample items = $795
Allowance for sampling risk = $200,000
Projected misstatement = $100,000 overstatement
The most likely amount of the misstatement is equal to:
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
10th Canadian Edition Volume 2
1118300858, 978-1118300855
