Question: please answer the question (c) fI) MUS Sampling: a. Sample size for a population of $2,000,000 with 100,000 accounts: Risk of Incorrect Tolerable Expected Appropriate


please answer the question (c)


\fI) MUS Sampling: a. Sample size for a population of $2,000,000 with 100,000 accounts: Risk of Incorrect Tolerable Expected Appropriate Sample Acceptance Misstatement Misstatement Size Sample Interval 10% $200,000 $20,000 28 71429 2 10% $100,000 $30,000 87 22989 3 5% $50,000 $10,000 232 8621 4 5% $25,000 $3,000 368 5435 b. Sample Evaluations and Conclusions: In planning a sample for A/R. you use the following information: Risk of Incorrect Population Tolerable Expected Actual Acceptance Size Misstatement Misstatement Sample Size * 5% $2,000,000 $100,000 $10,000 75 Confirmations were sent out and the following differences were noted: Customer Amount Amount Number per Books per Customer Reason 13062 $ 36.321 18,161 Billed twice for the same order. Customer sent payment on 12/27. Payment was received on 1/4. Fiscal year-end is 13672 S 986 12/31. 13235 S 109 82 Billed for wrong model. 13785 $ 2.483 2,257 Failed to give appropriate discount Using the above information, give the following amounts: Projected misstatement Upper limit on misstatement =1-Risk of Incorrect Acceptance =1-5%=95% Allowance for sample risk Show all your work! c. Based on your evaluation in part b., are accounts receivables materially misstated? Why or why not
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