Question: a. Determine sample size: Determine sample size for each company using classical variables MPU estimation sampling. b. Analysis and evaluation: Assume the total audited value

a. Determine sample size: Determine sample size for each company using classical variables MPU estimation sampling.

b. Analysis and evaluation: Assume the total audited value of the Company X sample is $13,600 and the standard deviation is $52. Evaluate the sample results.

c. Analysis and evaluation: Assume the average of the sample audit values in the Company Y sample is $90 and the standard deviation is $30. Evaluate the sample results.

Data relevant to the December 31, 2022, audit of accounts receivable in two of your clients is presented in the tabulation below.

Company X Company Y Client's book value Population size Desired risk of

Company X Company Y Client's book value Population size Desired risk of incorrect acceptance Desired risk of incorrect rejection Tolerable misstatement Estimated standard deviation $90,000 $200,000 2,000 1,000 20% 30% 5% 10% $10,000 $25 $9,000 $50

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