You are the auditor of Jexel, an auto air-conditioner service and repair company, and you have decided to use the mean-per-unit method to test the existence and gross valuation of recorded accounts receivable. The clients records include 9,800 accounts with a total book value of $1,280,000. You decide to use tolerable misstatement of $142,000, an incorrect acceptance risk of 5 percent, and an incorrect rejection risk of 1.0 percent. Using Excel, you estimated the standard deviation of the population as $22. Use Figure 9-8 to obtain the incorrect acceptance and rejection coefficients.

Required:

a. Determine the sample size.

b. Assume you tested the sample and got the following results: The mean audited value of the accounts sampled was $121. Assuming that the standard deviation of the samples audited value is also $22, what is the projected misstatement for the population?

c. Assuming that the standard deviation of the samples audited value is $17, what is the projected misstatement for the population?

Required A Required B Req Determine the sample size. (Rour Sample size Assume you tested the sample and got the following results Assuming that the standard deviation of the sample's audite population? What is the confidence interval? Is the account Projected miststatement Confidence Interval Materially misstated? Will you accept the account? Assuming that the standard deviation of the sample's audited value is $20, what is the projected misstatement for the population? Projected miststatement Confidence interval Materially misstated? Will you accept the account