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The auditor of AU Systems Inc. is using monetary unit sampling to estimate the Accounts Receivable balance at year end. The auditor determined the risk
The auditor of AU Systems Inc. is using monetary unit sampling to estimate the Accounts Receivable balance at year end. The auditor determined the risk of incorrect acceptance of and used a table to find a reliability factor of The auditor also determined a sampling interval of $ based on the population book value and the sample size. Only one error was found in the sample. An account had an audited value equal to the first four digits of your AUID in $ This audited value was lower than the account's book value by an amount equal to the fourth through sixth digits of your AUID in $
Required:
A What is the projected misstatement? Show your work and round off your answer to the nearest dollar.
B What is the upper limit on misstatement? Show your work.
C If the tolerable misstatement for Accounts Receivable is $ would you accept the population of Accounts Receivable to be materially correct? Answer yes or no and briefly explain.
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