The audit team sets tolerable misstatement at $3,000,000, expected misstatement at $1,750,000, and risk of incorrect...

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The audit team sets tolerable misstatement at $3,000,000, expected misstatement at $1,750,000, and risk of incorrect acceptance at 37%. Independent of part a, you use a sample size of 73 confirmations, and the sampling interval is $981,134. You may assume that except for the following, you received confirmations from customers that showed no exceptions. Two confirmations were returned in which customers noted exceptions. After performing follow-up procedures, you determine that two items are misstatements as follows. Customer Number ....Book Value (BV)....Audit Value (AV) 00030 21287 $130,500 75,500 $112,500 74,745 1. Determine the upper misstatement limit. use provided template 2. Draw a conclusion about whether the existence assertion for accounts receivable is presented fairly at December 31, 2025. Sampling Interval Projected Misstatements (PM) Total PM Allowance for Sampling Risk (ASR): Book Value Audit Value Tainting Sampling ((BV-AV)/BV) Interval Projected Misstatement 1 2 S $ $ S S PM Basic Precision (Basic Level of Undertainty): Error 0 Reliability Factor Tainting ((BV-AV)/BV) Sampling Interval 1.00 1.00 $ S Incremental Analysis Total ASR (basic precision + IA) Upper Misstatement Limit (PM + ASR) Incremental Incremental Rank Order Change in Change in Projected Misstatement Reliability Factor Reliability Incremental Allowance For Sampling Factor - 1.0 Risk 1 $ 1.14 0.14 S 2 $ 1.11 0.11 $ $ S ASR $ The audit team sets tolerable misstatement at $3,000,000, expected misstatement at $1,750,000, and risk of incorrect acceptance at 37%. Independent of part a, you use a sample size of 73 confirmations, and the sampling interval is $981,134. You may assume that except for the following, you received confirmations from customers that showed no exceptions. Two confirmations were returned in which customers noted exceptions. After performing follow-up procedures, you determine that two items are misstatements as follows. Customer Number ....Book Value (BV)....Audit Value (AV) 00030 21287 $130,500 75,500 $112,500 74,745 1. Determine the upper misstatement limit. use provided template 2. Draw a conclusion about whether the existence assertion for accounts receivable is presented fairly at December 31, 2025. Sampling Interval Projected Misstatements (PM) Total PM Allowance for Sampling Risk (ASR): Book Value Audit Value Tainting Sampling ((BV-AV)/BV) Interval Projected Misstatement 1 2 S $ $ S S PM Basic Precision (Basic Level of Undertainty): Error 0 Reliability Factor Tainting ((BV-AV)/BV) Sampling Interval 1.00 1.00 $ S Incremental Analysis Total ASR (basic precision + IA) Upper Misstatement Limit (PM + ASR) Incremental Incremental Rank Order Change in Change in Projected Misstatement Reliability Factor Reliability Incremental Allowance For Sampling Factor - 1.0 Risk 1 $ 1.14 0.14 S 2 $ 1.11 0.11 $ $ S ASR $

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To solve this well fill in the provided template with the given information 1 ... View the full answer