Use the current year's audit information to calculate the sampling interval and the sample size. Enter...

 

  
 

Transcribed Image Text:

Use the current year's audit information to calculate the sampling interval and the sample size. Enter in the table below the proper amounts as given or calculated. 1. Confidence factor Factor 2. Tolerable misstatement 3. Sampling interval 4. Recorded amount 5. Sample size Amount 123 123 123 123 123 Confidence Factors for Misstatements Number of Misstatements 0 01234 1.00% 4.61 6.64 8.41 10.05 11.61 Risk of Incorrect Acceptance 10.00% 2.31 3.89 5.33 6.69 8.00 5.00% 3.00 4.75 6.30 7.76 9.16 15.00% 1.90 3.38 4.72 6.02 7.27 20.00% 1.61 3.00 4.28 5.52 6.73 [I These are notes from the meeting between Edward Prince and Dina Bocelli on Monday February 7, 20X1. 1. Agreement between Dina and Ed to use monetary unit sampling finalized. 2. Dina confirms that the Tolerable Misstatement for the current year's audit is $15,000. 3. It is agreed that the appropriate risk of incorrect acceptance is 5%. 4. Ed and Dina agree that next year's engagement should also include monetary unit sampling. 5. Ed notes and verifies with proper documentation that the recorded amount of accounts receivable for the current year's audit is $300,000. 6. Related to the current year's audit, the number of misstatements allowed is determined to be 0 by both Ed and Dina. Use the current year's audit information to calculate the sampling interval and the sample size. Enter in the table below the proper amounts as given or calculated. 1. Confidence factor Factor 2. Tolerable misstatement 3. Sampling interval 4. Recorded amount 5. Sample size Amount 123 123 123 123 123 Confidence Factors for Misstatements Number of Misstatements 0 01234 1.00% 4.61 6.64 8.41 10.05 11.61 Risk of Incorrect Acceptance 10.00% 2.31 3.89 5.33 6.69 8.00 5.00% 3.00 4.75 6.30 7.76 9.16 15.00% 1.90 3.38 4.72 6.02 7.27 20.00% 1.61 3.00 4.28 5.52 6.73 [I These are notes from the meeting between Edward Prince and Dina Bocelli on Monday February 7, 20X1. 1. Agreement between Dina and Ed to use monetary unit sampling finalized. 2. Dina confirms that the Tolerable Misstatement for the current year's audit is $15,000. 3. It is agreed that the appropriate risk of incorrect acceptance is 5%. 4. Ed and Dina agree that next year's engagement should also include monetary unit sampling. 5. Ed notes and verifies with proper documentation that the recorded amount of accounts receivable for the current year's audit is $300,000. 6. Related to the current year's audit, the number of misstatements allowed is determined to be 0 by both Ed and Dina.

Answer rating: 100% (QA)

Answer To calculate the sampling interval and the sample size using monetary unit sampling we can us... View the full answer