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

Essay

You are planning to use monetary unit sampling (MUS)to evaluate accounts receivable for Rose Company.The accounts receivable account totals $4,000,000.You have assessed a risk of incorrect acceptance of 10 percent,a tolerable misstatement of $200,000,and an expected error of $40,000.
a.Calculate the sample size and sampling interval.
b.Regardless of your answer to (a),use a sample size of 66 and the related sampling interval to calculate the upper limit on misstatement assuming you found the following differences.