Edwards has decided to use monetary unit sampling (MUS) in the audit of a clients...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Edwards has decided to use monetary unit sampling (MUS) in the audit of a clients accounts receivable balance. Few, if any, misstatements of the account balance are expected.
1. Calculate the sampling interval and the sample size Edwards should use given the following information:
Tolerable misstatement $ 50,000
Risk of incorrect acceptance 5%
Estimated misstatement $ 15,000
Recorded amount of accounts receivable $3,000,000
2. What is the effect on sample size of changing the risk of incorrect acceptance to 1%?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
