9A-13. Edwards has decided to use monetary unit sampling (MUS) in the audit of a client's accounts rectivable balance. Few, if any. misstatements of the account balance are expected Edwards plans to use the following MUS table Number of Overstatement Misstatements 0 2 3 Risk of Incorrect Acceptance 15 5% 10% 15% 20% 4.61 3.00 2.31 1.90 1.61 6.64 4.75 3.89 3.38 3.00 8.41 6.30 5.33 4.72 4.28 10.05 7.76 6.69 6.02 5.52 11.61 9.16 8.00 7.27 6.73 A BETA Identify the advantages of using MUS over classical variables sampling. Calculate the sampling interval and the sample size Edwards should use given the following information: Tolerable misstatement $ 15.000 Risk of incorrect acceptance 5% Estimated misstatement 0 Recorded amount of accounts receivable $300,000 Note: Requirements (c) through (1) are not related to requirements (a) and (b). Assuming a sampling interval of $5,000, calculate the total projected misstatement if the following three errors were discovered in MUS: Misstatement Book Value Andited Value 2 $ 400 500 $ 320 0 5 6,000 2,500 1. Calculate basic precision and incremental allowance. Calculate the upper limit on misstatements. f Will you accept or reject the account as materially correct? Explain. This problem includes additional