Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 3. (20 Points) Assume you are planning the confirmation of accounts receivable. There are 2,000 customer accounts with a total book value $5,643,200. Tolerable

image text in transcribed
image text in transcribed
Problem 3. (20 Points) Assume you are planning the confirmation of accounts receivable. There are 2,000 customer accounts with a total book value $5,643,200. Tolerable misstatement for this client is $150,000 and expected misstatement is $30,000. The risk of incorrect acceptance is 20%. Required: a. What is the sample size? b. What is the sampling interval? c. Using the following list of the first five items in your population, a random start of $15,000, and the rounded sample interval you calculated, identify the items to include in your sample. Cumulative Cumulative Book Value Plus Included Item Beok Value Book Value Random Start In Sample Amount (S) Start 3,900 2 26,000 5,000 4 130,000 2.000 Problem 3. (20 Points) Assume you are planning the confirmation of accounts receivable. There are 2,000 customer accounts with a total book value $5,643,200. Tolerable misstatement for this client is $150,000 and expected misstatement is $30,000. The risk of incorrect acceptance is 20%. Required: a. What is the sample size? b. What is the sampling interval? c. Using the following list of the first five items in your population, a random start of $15,000, and the rounded sample interval you calculated, identify the items to include in your sample. Cumulative Cumulative Book Value Plus Included Item Beok Value Book Value Random Start In Sample Amount (S) Start 3,900 2 26,000 5,000 4 130,000 2.000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey of Accounting

Authors: Carl S Warren

6th edition

978-113318912, 1133189121, 978-1133189121

More Books

Students also viewed these Accounting questions