Rachel Robertson wishes to use mean-per-unit sampling to evaluate the reasonableness of the book value of the accounts receivable of Smith, Inc. Smith has 10,600 receivable accounts with a total book value of $1,570,000. Robertson estimates the population's standard deviation to be equal to $24. After examining the overall audit plan, the auditors believe that the account's tolerable misstatement is $51,000, and that a risk of incorrect rejection of 5 percent and a risk of incorrect acceptance of 10 percent are appropriate

Required information Section Break Questions 42-43 (The following information applies to the questions displayed below] Rachel Robertson wishes to use mean-per-unit sampling to evaluate the reasonableness of the book value of the accounts receivable of Smith, Inc. Smith has 10,600 receivable accounts with a total book value of $1,570,000. Robertson estimates the population's standard deviation to be equal to $24. After examining the overall audit plan, the auditors believe that the account's tolerable misstatement is $51,000, and that a risk of incorrect rejection of 5 percent and a risk of incorrect acceptance of 10 percent are appropriate. Use Eigure 9.8. Simulation 9-43 [LO 9-8] Assuming the following results: Book value of items in sample = $140 Average audited value of items in sample = $137 Standard deviation of sample = $27 Required: a. Use the ratio method to calculate: (The solution from 9-42 is required in order to complete 9-43.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) (1) Projected misstatement (2) Estimated total audited value