Question: The auditor is using monetary unit sampling to estimate the Accounts Receivable balance at year end.The auditor determined the risk of incorrect acceptance of 5%
The auditor is using monetary unit sampling to estimate the Accounts Receivable balance at year end.The auditor determined the risk of incorrect acceptance of 5% and used a table to find a reliability factor of 3.0.The auditor also determined a sampling interval of $5,000 based on the population book value and the sample size.Only one error was found in the sample. An account had an audited value equal to $4500. This audited value was lower than the account's book value by an amount equal to $500.
A. Calculate the tainting percentage for this account.Show your work.
B. Calculate the projected misstatement for this account.Show your work.
C. Calculate the upper limit on misstatement.Show your work.
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