Question
Scott Duffney, CPA, has randomly selected and audited a sample of 100 of Will-Marts accounts receivable. Will-Mart has 3,000 accounts receivable accounts with a total
Scott Duffney, CPA, has randomly selected and audited a sample of 100 of Will-Marts accounts receivable. Will-Mart has 3,000 accounts receivable accounts with a total book value of $3,650,000. Duffney has determined that the accounts tolerable misstatement is $900,000.
His sample results are as follows:
Average audited value | $ | 1,210 | |
Average book value | 1,218 | ||
Required:
Calculate the accounts receivable estimated audited value and projected misstatement using the: (Do not round your intermediate calculations and round your final answer to nearest whole dollar.
Estimated Audited Value Projected Misstatementa.
Mean-per-unit method.
b.Ratio method.
c.Difference method.
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