You want to select a dollar unit sample from a population of cash disbursements. The parameters are:

Assume a confidence level of 90% and an allowable error of \($1,000,000\).
Required :

a. What is the sampling interval if you plan to use systematic sampling?

b. How might you identify physical audit units containing the random dollars selected without computer assistance?

c. Assume that in your audit tests, you selected a sample of 120 dollar units. The four errors listed below were found. Compute upper and lower error bounds at a confidence level of 90%.

d.Are cash disbursements materially misstated? Given the sample size determined in part a and the actual sample size in c, explain your answer.

Recorded population value Population characteristics $26,800,768 Voucher register with 634 pages, 50 items per page