Assume Several Auditors Selected Various Unrestricted, Unstratified Random Samples from a Population

question 25

Essay

Assume several auditors selected various unrestricted, unstratified random samples from a population of 1,200 customers' accounts receivable with a recorded value of $480,000.The results of their tests are shown in the table below.
Required:
For each of the sample sizes, calculate the projected likely misstatement (PLM) using (1) average difference method, and (2) the Dollar Unit Sample method.Treat each case independently.Round the PLM solutions to the nearest dollar.
Projected Likely Misstatement
Overstatement (Understatement)

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Definitions:

Government Bonds

Debt securities issued by a government to support government spending and obligations.

Savings Account

A bank account where people can deposit money to earn interest over time, with fewer withdrawal facilities.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water.

Discouraged Workers

Individuals who have stopped looking for employment due to repeated failure to find work, and are no longer counted as part of the labor force.