Question: Problem 4 Monetary Unit Sampling - Upper Limit on Misstatements (Substantive Tests, Dollar Amounts) (The Monetary Unit Sampling Tables are on the last page of

Problem 4 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 A) Calculate the Projected Misstatement $ B) Calculate the Basic Precision Basic Precision SamplingIntervalxReliabilityFactorat0Overstatements Basic Precision C) Calculate the Incremental Allowance $ Reliability Factor Increments X Misstatements (Largest First) = Incremental Allowance 1. Overstatement 1 - Overstatement 01

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