QUESTION 2

The following data is related to the audit of accounts receivable confirmation of Melewar Sdn Bhd for the year ended 31 December 2020:

Accounts receivable recorded balance RM1,800,800 Number of accounts 2,220 A non-statistical sample was taken as follows: All accounts over RM10,000 (20 accounts) RM720,000 80 accounts under RM10,000 RM125,300 Tolerable misstatement for the confirmation test RM100,000Recorded Value (RM) Audited Value (RM) Accounts over RM10,000 720,000 505,000 Accounts under RM10,000 125,300 113,970 Individual misstatements for accounts under RM10,000: Account 18 5,000 3,050 Account 27 1,300 980 Account 39 3,700 2,190 Account 44 4,800 3,100 Account 58 3, 100 1,900 Account 61 7,500 5,400 Account 77 8,900 6,350