Question: Scott Duffney, CPA, has randomly selected and audited a sample of 100 of Will-Mart's accounts receivable. Will-Mart has 3,000 accounts receivable accounts with a

Scott Duffney, CPA, has randomly selected and audited a sample of 100

Scott Duffney, CPA, has randomly selected and audited a sample of 100 of Will-Mart's accounts receivable. Will-Mart has 3,000 accounts receivable accounts with a total book value of $3,000,000. Duffney has determined that the account's tolerable misstatement is $250,000. His sample results are as follows: Average audited value Average book value $ 990 998 Required: Calculate the accounts receivable estimated audited value and projected misstatement using the: (Do not round your Intermediate calculations and round your final answer to nearest whole dollar.) a. Mean-per-unit method. b. Ratio method. c. Difference method. Estimated Audited Value Projected Misstatement

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!