Question 1

1. You plan to use monetary-unit sampling to evaluate accounts receivable for Violet Company. The accounts receivable account totals $2,484,000. You assess a risk of incorrect acceptance of 10 percent, a tolerable error of $125,000, and an expected error of $50,000.

   Blank 1 Calculate the sample size

   Blank 2 Calculate the sampling interval

   Blank 3 Calculate the upper error limit assuming you found the following differences.

   Account	Recorded Value	Audit Value
   102	$20,000	$15,400
   235	$14,800	$12,580
   96	$47,200	$45,350

   Blank 4 Based on your testing, what is your conclusion about the balance of Accounts Receivable and why?