Question: QUESTION 1 MONETARY UNIT SAMPLING We are going to use MUS for testing additions to property plant and equipment to audit the assertions of existence

QUESTION 1 MONETARY UNIT SAMPLING We are going to use MUS

QUESTION 1 MONETARY UNIT SAMPLING We are going to use MUS for testing additions to property plant and equipment to audit the assertions of existence and valuation. Few, if any, misstatements are expected. Tolerable Misstatement $15,000 Expected Misstatement $6,000 Desired Confidence Level 95% Total amount of additions during the year $300,000 1. What should our sample size be given the above information?(Hint: you will use the sample size tables from Ch. 8 to obtain sample size for MUS sampling): 2. Calculate the UML assuming that you identified the following misstatements in your testing: Misstatement Number 1 2 3 Book Value $400 500 3,000 Audit Value $320 0 2,500 The UML is (round to the nearest dollar): 8785

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