You have been assigned to audit your client's accounts receivable account which has a year-end balance...
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You have been assigned to audit your client's accounts receivable account which has a year-end balance of $800,000. You have decided to use monetary-unit sampling. Your tolerable misstatement is $20,000. Your acceptable risk of incorrect acceptance for accounts receivable is 10%. A sample of size 100 was used. Assume the following three errors were discovered in the sample. Customer Number Recorded Accounts Receivable (Book Value) 3045 $5,400 3119 $11,500 3482 $6,800 Correct Accounts Receivable (Audit Value) $ 4,500 $ 11,900 $ 4,800 Required: Fill in the table provided and calculate the upper misstatement bound on the basis of the client misstatements in the sample. Upload your spreadsheet. Monetary Unit Sampling Item Tainting Recorded Value Sampling Interval Totals Add basic precision Upper misstatement bound Audited Value Projected misstatement Misstatement Amount Incremental change in confidence factor (Table 17-7) Misstatement/Recorded Value (Tainting) Projected misstatement plus incremental allowance for sampling risk You have been assigned to audit your client's accounts receivable account which has a year-end balance of $800,000. You have decided to use monetary-unit sampling. Your tolerable misstatement is $20,000. Your acceptable risk of incorrect acceptance for accounts receivable is 10%. A sample of size 100 was used. Assume the following three errors were discovered in the sample. Customer Number Recorded Accounts Receivable (Book Value) 3045 $5,400 3119 $11,500 3482 $6,800 Correct Accounts Receivable (Audit Value) $ 4,500 $ 11,900 $ 4,800 Required: Fill in the table provided and calculate the upper misstatement bound on the basis of the client misstatements in the sample. Upload your spreadsheet. Monetary Unit Sampling Item Tainting Recorded Value Sampling Interval Totals Add basic precision Upper misstatement bound Audited Value Projected misstatement Misstatement Amount Incremental change in confidence factor (Table 17-7) Misstatement/Recorded Value (Tainting) Projected misstatement plus incremental allowance for sampling risk
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Related Book For
Auditing An International Approach
ISBN: 978-0071051415
6th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley
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