Question: Finley Gunny is using nonstatistical sampling in the examination of Highway Companys accounts receivable, which were recorded at $ 350,000. Gunny determined a tolerable misstatement

Finley Gunny is using nonstatistical sampling in the examination of Highway Company’s accounts receivable, which were recorded at $ 350,000. Gunny determined a tolerable misstatement of $ 15,000 and a sample size of 49 items.

Required:
a. How does Gunny determine sample size using non-statistical sampling?
b. If the items selected by Gunny had an aggregate recorded balance of $ 50,000 and an aggregate audited balance of $ 45,000, calculate the estimated audited balance.
c. What would Gunny conclude with respect to the fairness of Highway’s accounts receivable?

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