Sharina has instructed you as a senior auditor to audit the inventory management of SC Berhad. The
Fantastic news! We've Found the answer you've been seeking!
Question:
Sharina has instructed you as a senior auditor to audit the inventory management of SC Berhad. The book value is RM 13,500,000. Tolerable misstatement is set at RM 540,000. The expected population misstatement is RM135,000. The risk of incorrect acceptance is 10%.
a) Calculate the required MUS sampling size.
b) Later, you were informed that the inventory book value is RM 18,000,000, how does this new information impact to (a). Explain.
c) What are the consequences when the auditor had concluded a Type II error which is the the risk of incorrect acceptance?
Related Book For
Auditing Cases An Interactive Learning Approach
ISBN: 9780134421827
7th Edition
Authors: Mark S Beasley, Frank A. Buckless, Steven M. Glover, Douglas F Prawitt
Posted Date: