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

question 31

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.
Projected Likely Misstatement
Overstatement (Understatement)
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.

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Definitions:

Smuggled

Goods or commodities that are imported or exported illegally, without paying tariffs or adhering to trade regulations.

Transit

The movement of people or goods from one location to another, typically refers to public transportation systems.

Equilibrium Price

The market price at which the quantity of an item supplied is equal to the quantity demanded.

Fine Imposed

A monetary penalty levied by an authority on individuals or entities as punishment for violations of legal rules or regulations.