Solution-G1.xls - 1 Problem G-1 A/R Book Balance Risk of Incorrect Acceptance Expected Error Tolerable Error $3,000,000 10 $30,000 $150,000 Solution

Solution-G1.xls - 1 Problem G-1 A/R Book Balance Risk of...

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1 Problem G-1 A/R Book Balance: $3,000,000 Risk of Incorrect Acceptance: 10% Expected Error: $30,000 Tolerable Error: $150,000 Solution Sample Size BV x RF n = -------------------------- TE - (EE x EF) $3,000,000 2.31 n = ------------------------------------- = 66.0 $105,000 Rounded = 66 Sampling Interval N SI = --------------- n $3,000,000 SI = ----------------- = $ 45,455 66
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2 UEL UEL = BP + PE + IA BP = SI x RF BP = $ 45,455 2.31 $ 105,000 Errors BV AV Difference Tainting SI PE 1 $800 $0 $800 100.0%
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  • Winter '18
  • Jack Armitage

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