Using MUS, an auditor determined the preliminary sample size for testing inventory valuation to be 64 (using a 100% average misstatement assumption). The population has 2,900 inventory items valued at $13,100,000. The tolerable misstatement for both understatements and overstatements is $393,000 at a 15 percent ARIA. Assume that a sample of 100 units was obtained in sampling the inventory. Assume further that the following three misstatements were found: (Click the icon to view the misstatements.) (Click the icon to view the confidence factors for monetary unit sample size evaluation table.) Calculate the overstatement bound for the population. Draw audit conclusions based on the results. Complete the table below to calculate the misstatement amounts and the tainting proportion. (Round the tainting proportion to three decimals places, X.XXX.) Recorded Audited Factual Tainting - Misstatement / Recorded Amount 0.167 Misstatement Amount Amount Misstatement 1 $ 1,200 $ 1,000 $ 200.00 2 140 75 65.00 0.464 3 2,600 2,500 100.00 0.038 Complete the table below to compute the upper misstatement bound (overstatement bound). Begin by calculating the amounts needed to calculate the overstatement bound and then, calculate the totals, basic precision and upper misstatement bound. (Enter the tainting proportion to three decimals places, X.XXX. Enter the incremental change in confidence factor to two decimal places, X.XX. Round all other amounts to the nearest whole dollars.) Complete the table below to compute the upper misstatement bound (overstatement bound). Begin by calculating the amounts needed to calculate the overstatement bound and then, calculate the totals, basic precision and upper misstatement bound. (Enter the tainting proportion to three decimals places, X.XXX. Enter the incremental change in confidence factor to two decimal places, X.XX. Round all other amounts to the nearest whole dollars.) Projected Misstatement Incremental Plus Incremental Sampling Projected Change in Allowance for Tainting Interval Misstatement Confidence Factor Sampling Risk 0.464 0.167 0.038 Using MUS, an auditor determined the preliminary sample size for testing inventory valuation to be 64 (using a 100% average misstatement assumption). The population has 2,900 inventory items valued at $13,100,000. The tolerable misstatement for both understatements and overstatements is $393,000 at a 15 percent ARIA. Assume that a sample of 100 units was obtained in sampling the inventory. Assume further that the following three misstatements were found: (Click the icon to view the misstatements.) (Click the icon to view the confidence factors for monetary unit sample size evaluation table.) Calculate the overstatement bound for the population. Draw audit conclusions based on the results. Complete the table below to calculate the misstatement amounts and the tainting proportion. (Round the tainting proportion to three decimals places, X.XXX.) Recorded Audited Factual Tainting - Misstatement / Recorded Amount 0.167 Misstatement Amount Amount Misstatement 1 $ 1,200 $ 1,000 $ 200.00 2 140 75 65.00 0.464 3 2,600 2,500 100.00 0.038 Complete the table below to compute the upper misstatement bound (overstatement bound). Begin by calculating the amounts needed to calculate the overstatement bound and then, calculate the totals, basic precision and upper misstatement bound. (Enter the tainting proportion to three decimals places, X.XXX. Enter the incremental change in confidence factor to two decimal places, X.XX. Round all other amounts to the nearest whole dollars.) Complete the table below to compute the upper misstatement bound (overstatement bound). Begin by calculating the amounts needed to calculate the overstatement bound and then, calculate the totals, basic precision and upper misstatement bound. (Enter the tainting proportion to three decimals places, X.XXX. Enter the incremental change in confidence factor to two decimal places, X.XX. Round all other amounts to the nearest whole dollars.) Projected Misstatement Incremental Plus Incremental Sampling Projected Change in Allowance for Tainting Interval Misstatement Confidence Factor Sampling Risk 0.464 0.167 0.038