Assume that you are preparing to confirm accounts receivable at December which is one month prior to the fiscal yearend of January The book value of gross accounts receivable is $ Complete the following requirements related to the confirmation of receivables for Cloud based on previous work and the following information.
Required:
The audit team sets tolerable misstatement at $ expected misstatement at $ and risk of incorrect acceptance at Independent of part a you use a sample size of confirmations, and the sampling interval is $ You may assume that except for the following, you received confirmations from customers that showed no exceptions. Two confirmations were returned in which customers noted exceptions. After performing followup procedures, you determine that two items are misstatements as follows.
Customer Number Book Value BVAudit Value AV
$ $
Calculate the upper misstatement limit You may use the following template to guide the calculations:
Draw a conclusion about whether the existence assertion for accounts receivable is presented fairly at December
