Question: Based on the information in Problem 8-56, assume that your sampling interval is $100,000. a. What is your statistical conclusion if no misstatements are found

Based on the information in Problem 8-56, assume that your sampling interval is $100,000.

a. What is your statistical conclusion if no misstatements are found in the sample? Is the account balance acceptable? Explain.

b. Calculate the total estimated misstatement assuming the following misstatements are found in the sample:

Based on the information in Problem 8-56, assume that your

c. Do these results indicate that the account balance, as stated, is acceptable? Explain.
d. If the results are not acceptable, what courses of action are available to the auditor?

Book Vdue $210,000 9,000 15,000 Misstatement Number Audit Vdue $208,000 8,910 14,250

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a The audit conclusion if no misstatements are found in the sample is that the auditor is 70 percent confident that accounts receivable are not overstated by more than 121000 the basic precision 121 x ... View full answer

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