A: Finish the partially completed Calculation of Projected Misstatement.

B: Prepare a Calculation of Upper Misstatement Limit.

C: State your evaluation of the sampling results.

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Sample Size and Sampling Interval Information Recorded factory equipment additions $9,000,000 Risk of incorrect acceptance Tolerable misstatement Expected misstatement Sample size used Sampling interval 15.00% $450,000 (5% of recorded additions) $180,000 (2% of recorded additions) 87 (rounded up from 86.4) $103,000 (rounded down from $103,448) Sample Size and Sampling Interval Information Recorded factory equipment additions $9,000,000 Risk of incorrect acceptance Tolerable misstatement Expected misstatement Sample size used Sampling interval 15.00% $450,000 (5% of recorded additions) $180,000 (2% of recorded additions) 87 (rounded up from 86.4) $103,000 (rounded down from $103,448) Sample Size and Sampling Interval Information Recorded factory equipment additions $9,000,000 Risk of incorrect acceptance Tolerable misstatement Expected misstatement Sample size used Sampling interval 15.00% $450,000 (5% of recorded additions) $180,000 (2% of recorded additions) 87 (rounded up from 86.4) $103,000 (rounded down from $103,448) Sample Size and Sampling Interval Information Recorded factory equipment additions $9,000,000 Risk of incorrect acceptance Tolerable misstatement Expected misstatement Sample size used Sampling interval 15.00% $450,000 (5% of recorded additions) $180,000 (2% of recorded additions) 87 (rounded up from 86.4) $103,000 (rounded down from $103,448) Sample Size and Sampling Interval Information Recorded factory equipment additions $9,000,000 Risk of incorrect acceptance Tolerable misstatement Expected misstatement Sample size used Sampling interval 15.00% $450,000 (5% of recorded additions) $180,000 (2% of recorded additions) 87 (rounded up from 86.4) $103,000 (rounded down from $103,448) Sample Size and Sampling Interval Information Recorded factory equipment additions $9,000,000 Risk of incorrect acceptance Tolerable misstatement Expected misstatement Sample size used Sampling interval 15.00% $450,000 (5% of recorded additions) $180,000 (2% of recorded additions) 87 (rounded up from 86.4) $103,000 (rounded down from $103,448) Sample Size and Sampling Interval Information Recorded factory equipment additions $9,000,000 Risk of incorrect acceptance Tolerable misstatement Expected misstatement Sample size used Sampling interval 15.00% $450,000 (5% of recorded additions) $180,000 (2% of recorded additions) 87 (rounded up from 86.4) $103,000 (rounded down from $103,448) Sample Size and Sampling Interval Information Recorded factory equipment additions $9,000,000 Risk of incorrect acceptance Tolerable misstatement Expected misstatement Sample size used Sampling interval 15.00% $450,000 (5% of recorded additions) $180,000 (2% of recorded additions) 87 (rounded up from 86.4) $103,000 (rounded down from $103,448)

Answer rating: 100% (QA)

Ans A Following is the calculation of Projected Management Ans B Following ... View the full answer