You are planning to use monetary unit sampling to evaluate accounts receivable for Violet Company. The accounts receivable account totals $3,000,000. You have assessed a risk of incorrect acceptance of 5 percent, a tolerable misstatement of $120,000, and an expected misstatement of $24,000.

a. Calculate the sample size and sampling interval.

b. Regardless of your answer to (a), use a sample size of 125 and the related sampling interval and calculate the upper limit on misstatements assuming you found the following differences.

Account	Recorded Value	Audit Value	Difference
102	$2,000	$600	$1,400
235	$3,200	$1,920	$1,280

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