Question: Monetary Unit Sampling - Upper Limit on Misstatements (Substantive Tests, Dollar Amounts) (The Monetary Unit Sampling Tables are on the last page of this handout.)

Monetary Unit Sampling - Upper Limit on Misstatements (Substantive Tests, Dollar Amounts) (The Monetary Unit Sampling Tables are on the last page of this handout.) Risk of Incorrect Acceptance 5%, Book Value of Accounts Receivable $600,000 Items found with misstatements in the accounts receivable sample Included in Audit Book Projected Projected Incremental Value Value Interval Value Misstatements Allowance $3,000 $5,000 $6,000 ___________ _0_____ Yes No $500 $410 $6,000 ___________ ___________ Yes No $4,700 $8,000 $6,000 ___________ _2,000____ Yes No AM = 8000 - 6000 = 2000

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