Question: An auditor is determining the appropriate sample size for testing inventory valuation using MUS. The population has 3,140 inventory items valued at $19,325,000. The tolerable

An auditor is determining the appropriate sample size for testing inventory valuation using MUS. The population has 3,140 inventory items valued at $19,325,000. The tolerable misstatement is $575,000 at a 10 percent ARIA. No misstatements are expected in the population. Calculate the preliminary sample size. Select the formula, then enter the amounts and calculate the sample size. (Abbreviation used: TM = tolerable misstatement. Enter amounts in the formula to two decimal places, X.XX. Round the sample size up to the nearest whole amount as needed.) (Click the icon to view the table for determining the confidence factor.) Confidence Factor TM as Percentage of Population Value = Sample Size = REAL

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

An auditor is determining the appropriate sample size for testing inventory valuation using MUS. The population has 2,620 inventory items valued at $12,625,000. The tolerable misstatement for both...

An auditor is determining the appropriate sample size for testing inventory valuation using MuS. The population has 3,140 inventory items valued at 519,325 , Calculate the preliminary sample stze....

An auditor is determining the appropriate sample size for testing inventory valuation using Mus. The population has 3,140 inventory items valued a Calculate the preliminary sample size. Select the...

An auditor is determining the appropriate sample size for testing inventory valuation using MUS. The popula tion has 2,620 items valued at $$12,625,000$. The tolerable mis statement for both...

An auditor is determining the appropriate sample size for testing inventory valuation using MUS. The population has 4 comma 3304,330 inventory items valued at $ 12 comma 500 comma 000$12,500,000. The...

please finish the task 5. Noyers Ltd Audit Case Study Noyers Ltd Company Background The Entity Noyers Ltd, a company with its headquarters in Launceston, Tasmania, has been listed on the Australian...

I need number 4 "Refer to Module IV requirement 2 and the file named 20X9 attrib.xlsx WP 11-3A. Enter the sample size for this test." Module IV: MUS Sampling-Factory Equipment Additions Richard...

Assume that you are preparing to confirm accounts receivable at December 31, 2022, which is one month prior to the fiscal year-end of January 31, 2023. The book value of gross accounts receivable is...

The boom AC is a 4-in. square steel tube with a wall thickness of 0.25 in. The boom is supported by the 0.5-in.-diameter pin at A, and the 0.375-in.-diameter cable BC. The working stresses are 25 ksi...

Are you in favor of the FDA requiring nutritional labeling, or do you consider such requirements an unnecessary intrusion into the free marketplace? Justify your position on this matter.

24. During bad recessions, investment in plant and equipment will . (LO5) a) be negative c) fall somewhat b) fall by around 1520 percent d) rise

The force constant of a massless spring is 2 5 . 0 N / m . A mass of 0 . 4 5 kg is oscillating in simple harmonic motion at the end of the spring

How did Hurricane Katrina affect terrorism preparedness in the United States?

Do you think that all phases of emergency management should be given equal weight in terms of resources, or should one function be a higher priority, and why?

What are the potential benefits to, FEMA as an organization within DHS?