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
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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