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The auditors wish to test the valuation of accounts receivable in the audit of Kaplan Corporation. The client has $990,000 of total recorded receivables, composed
The auditors wish to test the valuation of accounts receivable in the audit of Kaplan Corporation. The client has $990,000 of total recorded receivables, composed of 2,180 accounts. Use Figure 9-13 to determine the reliability factor. The auditors have decided to use structwed nonstatistical sampling and have determined the following: Voverable misstatement Assessment of inherent and control nisk Risk related to other substantive procedures $48,000 Moderate Moderate Required: a. Calculate the required sample size. Roundup to the next whole number.) Sample size rences b. Assume that the auditors have tested the sample nd discovered the following three misstatements. The remainder of the sample had an average value tbook and auditeit orme hod to calculate the projected misstatement of the population. Do not round any division. Round your answer to the nearest dollan amount.) Book Value $100 560 920 Audited Value $112 611 537 Projected misstatement c. Use the results obtained in (b) to come 16 ago Mor reject the population OAccept Reject Me Draw HUL
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