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You have been assigned to audit your client's accounts receivable account which has a year-end balance of $800,000. You
Posted: Sat May 07, 2022 7:39 pm
by answerhappygod
- You Have Been Assigned To Audit Your Client S Accounts Receivable Account Which Has A Year End Balance Of 800 000 You 1 (28.23 KiB) Viewed 36 times
You have been assigned to audit your client's accounts receivable account which has a year-end balance of $800,000. You have decided to use monetary-unit sampling. Your tolerable misstatement is $20,000. Your acceptable risk of incorrect acceptance for accounts receivable is 10%. A sample of size 100 was used. Assume the following three errors were discovered in the sample. Correct Accounts Receivable (Audit Value) Recorded Customer Accounts Number Receivable (Book Value) 3045 $5,400 3119 $ 11,500 3482 $ 6,800 $ 4,500 $ 11,900 $ 4,800 Required: Fill in the table provided and calculate the upper misstatement bound on the basis of the client misstatements in the sample. Upload your spreadsheet.
Monetary Unit Sampling Item Recorded Value Audited Value Misstatement Amount Misstatement/Recorded Value (Tainting) Tainting Sampling Interval Incremental Projected change in misstatement confidence factor (Table 17-7) Projected misstatement plus incremental allowance for sampling risk Totals Add basic precision Upper misstatement bound