Essay
You are planning to use monetary unit sampling to evaluate accounts receivable for Violet Company.The accounts receivable account totals $3,000,000.You have assessed a risk of incorrect acceptance of 5%,a tolerable misstatement of $120,000,and an expected misstatement of $24,000.
a.Calculate the sample size and sampling interval.
b.Regardless of your answer to (a),use a sample size of 125 and the related sampling interval and calculate the upper limit on misstatements assuming you found the following differences.
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