The spreadsheet referred to as "Calculation" is the second or bottom image. Please include all equations used to fill in the blanks. Thank You for your help!
You will use the spreadsheet labled "Calculation" to complete the problem. All calculations must be done using the spreadsheet You will need the tables in chapter 9 of the text. Daily and Hayes, CPAS were conducting the audit of Garner Tool Supply for the year ended December 31. Cindy Steward, senior-in-charge of the audit, plans to use MUS to audit Garner's inventory account. The balance in the inventory account at December 31 was $7,500,000. Requirements: a) Based on the information in the spreadsheet, calculate the required MUS sample size. b) Steve Brents, staff accountant, used the sample items selected in part (a) and performed the audit procedures listed in the inventory audit program. He noted the misstatements show in the spreadsheet in part (b). Using the information, calculate the upper misstatement limit (UML) c) Based on the results in part (b), what is the conclusion that Steve Brents should make concerning the inventory account balance? NOTE THAT ALL CALCULATIONS SHOULD BE ACCOMPLISHED USING THE SPREADSHEET! I WILL CHECK THE FORMULAS AND THEY WILL ACCOUNT FOR 50% OF THE POINTS. Auditing Chapter 9 Statistical Problem Requirement (a) Account Balalnce 7,500,000 Tolerable Misstatement 450,000 Expected Misstatement Risk of Incorrect Acceptance 150,000 5% Sample Size Sampling Interval Requirement (b) Projected Mistatement Book Value Audit Value Difference Tainting Factor Incremental Factor UML Error Number 1 13,500 2400 Error Number 2 9,000 6000 Error Number 3 65,000 0 Error Number 4 1200 640 1 2 4 Requirement (c) 5 Conclusion You will use the spreadsheet labled "Calculation" to complete the problem. All calculations must be done using the spreadsheet You will need the tables in chapter 9 of the text. Daily and Hayes, CPAS were conducting the audit of Garner Tool Supply for the year ended December 31. Cindy Steward, senior-in-charge of the audit, plans to use MUS to audit Garner's inventory account. The balance in the inventory account at December 31 was $7,500,000. Requirements: a) Based on the information in the spreadsheet, calculate the required MUS sample size. b) Steve Brents, staff accountant, used the sample items selected in part (a) and performed the audit procedures listed in the inventory audit program. He noted the misstatements show in the spreadsheet in part (b). Using the information, calculate the upper misstatement limit (UML) c) Based on the results in part (b), what is the conclusion that Steve Brents should make concerning the inventory account balance? NOTE THAT ALL CALCULATIONS SHOULD BE ACCOMPLISHED USING THE SPREADSHEET! I WILL CHECK THE FORMULAS AND THEY WILL ACCOUNT FOR 50% OF THE POINTS. Auditing Chapter 9 Statistical Problem Requirement (a) Account Balalnce 7,500,000 Tolerable Misstatement 450,000 Expected Misstatement Risk of Incorrect Acceptance 150,000 5% Sample Size Sampling Interval Requirement (b) Projected Mistatement Book Value Audit Value Difference Tainting Factor Incremental Factor UML Error Number 1 13,500 2400 Error Number 2 9,000 6000 Error Number 3 65,000 0 Error Number 4 1200 640 1 2 4 Requirement (c) 5 Conclusion
