We are going to use MUS for testing additions to property plant and equipment to audit...

 

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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. $15,000 $6,000 Tolerable Misstatement Expected Misstatement 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 Book Value Audit Value 1 $400 $320 2 500 3,000 2,500 The UML is (round to the nearest dollar): 8785 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. $15,000 $6,000 Tolerable Misstatement Expected Misstatement 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 Book Value Audit Value 1 $400 $320 2 500 3,000 2,500 The UML is (round to the nearest dollar): 8785

Answer rating: 100% (QA)

Answer Step1 PartA Computing the sampling size and the sampling interval for the par... View the full answer