Janice is performing dollar-unit- sampling in the audit of accounts receivable. Aria is 5%, the sample size is 60, and there are 4 overstatement deviations found in the sample. What would the incremental upper precision limits be for this sampling example? A. 4.9, 7.7, 10.1, 12.4, 14.6 B 49 28 24 23 22

Janice is performing dollar-unit- sampling in the audit of accounts receivable. Aria is 5%, the sample size is 60, and there are 4 overstatement deviations found in the sample. What would the incremental upper precision limits be for this sampling example? A. 4.9, 7.7, 10.1, 12.4, 14.6 B 49 28 24 23 22

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter8: Specialized Audit Tools: Attributes Sampling, Monetary Unit Sampling, And Data Analytics Tools

Section: Chapter Questions

Problem 15RQSC

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A component of an account balance has a recorded balance of $10,000 and an audited valueof $8,000. By using monetary unit sampling, if the sampling interval is $20,000, the projected misstatement would bea. $2,000.b. $4,000.c. $5,000.d. $10,000.
Assume that an account with a recorded balance of $5,000 has an audited value of $3,000. By using monetary unit sampling, if the sampling interval is $1,500, the projected misstatement would bea. $600.b. $900.c. $2,000.d. $3,000.
Identify the factors an auditor uses to decide the appropriateARO. Compare the sample size for an ARO of 10% with that of 5%, all other factorsbeing equal.
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