Roberts,CPA,decided to Use Monetary Unit Sampling in the Audit of a Client's

question 101

Essay

Roberts,CPA,decided to use monetary unit sampling in the audit of a client's accounts receivable balance.The recorded amount of the accounts receivable control account totaled $2,000,000 and consisted of approximately 5,000 accounts.Roberts established a tolerable misstatement of $100,000,a risk of incorrect acceptance of 5 percent,and an expected misstatement of $10,000.
a.Calculate the sample size.
b.Calculate the sampling interval.

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