I$\text{'}$m going to need:

a$)$

a$1.$ Sample size

a$2.$ Sampling interval

b$)$

b$1.$ UML $($Upper Misstatement Limit$)$

c$)$

Assume that, in addition to the four misstatements identified in part b$,$ Van Pelt had identified the following two understatements:

Misstatement Number Book Value Audit Value

$5$ $$6,000$ $$6,500$

$6$ $$750$ $$800$

Note: Use the tables, not IDEA, to solve for these problems. Negative amounts should be indicated with minus sign. Round your intermediate calculations to $3$ decimal places. Round the final answer to nearest dollar amount.

c$1.$ Net projected misstatement

McMullen and Mulligan, CPAs, were conducting the audit of Cusick Machine Tool Company for the year ended December $31.$ Jim Sigmund, senior$-$in$-$charge of the audit, plans to use MUS to audit Cusick's inventory account. The balance at December $31$ was $\backslash (\backslash$$ $9,000,000\backslash ).$ points awarded Required: a$.$ Based on the following information, compute the required MUS sample size and sampling interval using Table $8-5$: Note: Use the tables, not IDEA, to solve for these problems. Round your interval answer to the nearest whole number. Tolerable misstatement $=\backslash$$$360,000$ Expected misstatement $\backslash (=\backslash$$ $90,000\backslash )$ Risk of incorrect acceptance $\backslash (=5\backslash \%\backslash )$

b$.$ Nancy Van Pelt, staff accountant, used the sample items selected in part a and performed the audit procedures listed in the

inventory audit program. She notes the following misstatements:

Note: Use the tables, not IDEA, to solve for these problems. Round tainting factor to two decimal places. Do not round other

intermediate calculations. Round your final answer to the nearest dollar amount.

Using this information and Table $9-3,$ calculate the upper misstatement limit$.$ What conclusion should Van Pelt make concerning the

inventory?

Since the UML

is

than the tolerable misstatement $,$ Nancy Van

Pelt

accept the inventory account

as

$5$ percent risk that the account contains a

misstatement

c$.$ Assume that, in addition to the four misstatements identified in part b$,$ Van Pelt had identified the following two understatements:

Note: Use the tables, not IDEA, to solve for these problems. Negative amounts should be indicated with minus sign. Round your

intermediate calculations to $3$ decimal places. Round the final answer to nearest dollar amount.

Calculate the net projected population misstatement.