You Are Planning to Use Monetary Unit Sampling (MUS)to Evaluate

Essay

You are planning to use monetary unit sampling (MUS)to evaluate Violet Company's accounts receivable.The accounts receivable account totals $3,000,000.You have assessed a risk of incorrect acceptance of 5 percent,a tolerable misstatement of $120,000,and an expected error 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 misstatement,assuming that you found the following differences.