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;Book Audit;Value Value;$1,500 $1,000;2,400 1,200;8,200 7,500;6,000 5,400;9,000 8,000;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.;REQUIRED;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.
Paper#27099 | Written in 18-Jul-2015Price : $42