As auditor for the Harder Company, you decide to use PPS sampling in determining the fairness of accounts receivable. In executing the plan, you discover the following misstatements:
The book value of the accounts receivable is $720,000, the RF factor at a 5% risk of incorrect acceptance is 3.0, and sample size is 90. The incremental change in reliability factors for the first four misstatements are 1.75, 1.55, 1.46, and 1.40.
1. Calculate basic precision and the total projected misstatement.
2. Determine the incremental allowance for sampling risk and the upper misstatement limit.
3. State the quantitative conclusion that can be drawn from the sample assuming tolerable misstatement is $30,000.
Recently Asked Questions
- A client is admitted with a diagnosis of schizophrenia— catatonic type, and is in the excited phase. The client paces continuously and shouts when people
- Because you took BUS113 in college, you have been given an opportunity to work in japan for few years. you know that there are certain things you must learn
- According to Sewell 1999 , a truly revolutionary social movement will involve change in _____