All calculations must be done using the spreadsheet.

You will need the tables in chapters $889$ of the text.

Garner's inventory account. The balance in the inventory account at December $31$ was $$7,500,000.$

Requirements:

a$)$ Based on the information in the spreadsheet, calculate the required MUS sample size.

b$)$ Steve Brents, staff accountant, used the sample items selected in part $($a$)$ and performed the audit procedures listed in the inventory audit program. He noted the

misstatements show in the spreadsheet in part $($b$).$ Using the information, calculate the upper misstatement limit $($UML$).$

c$)$ Based on the results in part $($b$),$ what is the conclusion that Steve Brents should make concerning the inventory account balance?

Auditing & Assurance Services $-$ Statistical Problem $[$Chapter $9]$

Requirement $($b$)$ Book ValueAudit ValueDifferenceTainting Facto'$$jected Mistatemenncremental Facto LML

Requirement $[$c$]$

Conclusion: