QUESTION 30 PLEASE letter your answers. If your answers are not lettered properly, you will not receive full credit. You are planning to use monetary unit sampling to evaluate accounts receivable for Erna Company, Accounts receivable has a balance of $3,000,000. You have assessed risk of incorrect acceptance at 5%, tolerable misstatement at $120,000, and expected misstatement at $36,000. a. Determine the sample size and the sampling interval (3 points) b. Calculate the projected misstatement assuming you found the following differences (3 points) Account Recorded Value Audit value Difference 102 $2,000 $ 600 $1,400 235 3,200 1,920 1.280 c. Assume the incremental allowance for sampling risk is $17.880. Determine the basic allowance for sampling risk AND the upper limit on misstatement. (5 points) d. What is your conclusion based on the sample? How did you determine that? (4 points) QUESTION 30 PLEASE letter your answers. If your answers are not lettered properly, you will not receive full credit. You are planning to use monetary unit sampling to evaluate accounts receivable for Erna Company. Accounts receivable has a balance of $3,000,000 of incorrect acceptance at 5%, tolerable misstatement at $120,000, and expected misstatement at 36,000. a. Determine the sample size and the sampling interval. (3 points) b. Calculate the projected misstatement assuming you found the following differences. (3 points) Account Recorded Value Audit value Difference 102 $2,000 $ 600 $1,400 235 3,200 1,920 1,280 C. Assume the incremental allowance for sampling risk is $17,880. Determine the basic allowance for sampling risk AND the upper limit on misstatem d. What is your conclusion based on the sample? How did you determine that? (4 points) QUESTION 30 PLEASE letter your answers. If your answers are not lettered properly, you will not receive full credit. You are planning to use monetary unit sampling to evaluate accounts receivable for Erna Company, Accounts receivable has a balance of $3,000,000. You have assessed risk of incorrect acceptance at 5%, tolerable misstatement at $120,000, and expected misstatement at $36,000. a. Determine the sample size and the sampling interval (3 points) b. Calculate the projected misstatement assuming you found the following differences (3 points) Account Recorded Value Audit value Difference 102 $2,000 $ 600 $1,400 235 3,200 1,920 1.280 c. Assume the incremental allowance for sampling risk is $17.880. Determine the basic allowance for sampling risk AND the upper limit on misstatement. (5 points) d. What is your conclusion based on the sample? How did you determine that? (4 points) QUESTION 30 PLEASE letter your answers. If your answers are not lettered properly, you will not receive full credit. You are planning to use monetary unit sampling to evaluate accounts receivable for Erna Company. Accounts receivable has a balance of $3,000,000 of incorrect acceptance at 5%, tolerable misstatement at $120,000, and expected misstatement at 36,000. a. Determine the sample size and the sampling interval. (3 points) b. Calculate the projected misstatement assuming you found the following differences. (3 points) Account Recorded Value Audit value Difference 102 $2,000 $ 600 $1,400 235 3,200 1,920 1,280 C. Assume the incremental allowance for sampling risk is $17,880. Determine the basic allowance for sampling risk AND the upper limit on misstatem d. What is your conclusion based on the sample? How did you determine that? (4 points)
