This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: receivable balances of an agricultural coop. You are willing to accept a 5 percent risk of incorrect acceptance, the book value of the account is $2,500,000 and your sample size (based on a tolerable misstatement of $128,000, an expected tainting factor of 100 percent and an anticipated misstatement of zero) is 59. The results of your sample are on the next slide: a. Using the results of your sample and an assumed tainting factor of 100 percent, calculate the upper misstatement limit (UML). Interpret the result. b. Repeat part a but with actual tainting factors. Interpret the difference between that result and the result from part a. c. Calculate the UML (using actual tainting factors) assuming a 10 percent ARIA as opposed to a 5 percent level. Why is the result different from your result in part b?...
View
Full
Document
 Fall '08
 MONIKACAUSHOULLI

Click to edit the document details