WFire,CPA Is Examining the Accounts Receivable (Which Were Recorded at $500,000)for

question 85

Essay

W.Fire,CPA is examining the accounts receivable (which were recorded at $500,000)for TBB,Inc.,using a monetary unit sampling application.Using a risk of incorrect acceptance of 5% and a tolerable misstatement of $50,000,Fire has determined a sample size of 100 items and found the following three misstatements a.What sampling interval did Fire use?
b.Based on the preceding information,calculate the (1)actual misstatement,(2)projected misstatement,(3)incremental allowance for sampling risk,and (4)basic allowance for sampling risk.
c.What is the upper limit on misstatement?
d.Based on the preceding information,what would Fire's conclusion be with respect to TBB's accounts receivable balance?

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Definitions:

Epigenetic Changes

Modifications on DNA or histone proteins that affect gene activity without altering the DNA sequence, influencing how genes are expressed.

Environmental Factors

External elements that can influence an individual's development, health, and behavior, including social, cultural, and physical aspects.

Human Genome Project

An international scientific research project with the goal of determining the sequence of nucleotide base pairs that make up human DNA, and of identifying and mapping all of the genes of the human genome.

Bases

Substances that accept protons from acids and have a pH greater than 7 in solution, according to the Brønsted-Lowry definition.