Question 3 The following data is related to the audit of accounts receivable confirmation of Marvellous Sdn Bhd for the year ended 31 October 2020 RM1,500,800 5,200 Accounts receivable recorded balance Number of accounts A non-statistical sample was taken as follows: All accounts over RM10,000 (25 accounts) 70 accounts under RM10,000 Tolerable misstatement for the confirmation test RM510,000 RM96,300 RM100,000 The following are the results of the confirmation test: Recorded Value (RM) Audited Value (RM) Accounts over RM10,000 510,000 485,000 Accounts under RM10,000 96,300 77,300 Individual misstatements for accounts under RM10,000 Account 9 4.100 3,650 Account 27 1,540 700 Account 35 3,300 2.100 Account 44 4,010 3,150 Account 49 2,700 1.800 Account 55 6,500 4,800 Account 61 1,950 950 Required: Evaluate the results of the non-statistical sample using Average Misstatement Amount Method. [Total: 8 Marks] Question 3 The following data is related to the audit of accounts receivable confirmation of Marvellous Sdn Bhd for the year ended 31 October 2020 RM1,500,800 5,200 Accounts receivable recorded balance Number of accounts A non-statistical sample was taken as follows: All accounts over RM10,000 (25 accounts) 70 accounts under RM10,000 Tolerable misstatement for the confirmation test RM510,000 RM96,300 RM100,000 The following are the results of the confirmation test: Recorded Value (RM) Audited Value (RM) Accounts over RM10,000 510,000 485,000 Accounts under RM10,000 96,300 77,300 Individual misstatements for accounts under RM10,000 Account 9 4.100 3,650 Account 27 1,540 700 Account 35 3,300 2.100 Account 44 4,010 3,150 Account 49 2,700 1.800 Account 55 6,500 4,800 Account 61 1,950 950 Required: Evaluate the results of the non-statistical sample using Average Misstatement Amount Method. [Total: 8 Marks]