Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are the auditor of Unet Incorporated, an auto air-conditioner service and repair company, and you have decided to use the mean- per-unit method to

image text in transcribed
You are the auditor of Unet Incorporated, 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 client's records include 10,000 accounts with a total book value of $2,500,000. You decide to use tolerable misstatement of $182,000, an incorrect acceptance risk of 5 percent, and an incorrect rejection risk of 4.6 percent. Using Excel, you estimated the standard deviation of the population as $100 Required: a. Determine the sample size. b1. The mean audited value of the accounts in the sample was $244. Assuming that the standard deviation of the sample's audited value is also $100, what is the projected misstatement for the population? b2. Will you accept this account as not being materially misstated? c1. Assuming that the standard deviation of the sample's audited value is $125, what is the projected misstatement for the population? c2. Will you accept this account as not being materially misstated? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A Req B1 Red B2 Reg C1 Reg C2 The mean audited value of the accounts in the sample was $244. Assuming that the standard deviation of the sample's audited value is also $100, what is the projected misstatement for the population

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Self Study Problems/Solutions Book

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel

4th Edition

0471205133, 978-0471205135

More Books

Students also viewed these Accounting questions

Question

Describe the factors influencing of performance appraisal.

Answered: 1 week ago

Question

What is quality of work life ?

Answered: 1 week ago