Answered: An auditor is determining the…

An auditor is determining the appropriate sample size for testing inventory valuation using MUS. The population has 3,140 inventory ams Calculate the preliminary sample size.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The population has 3,140 inventory items valued at $19.325,000. The tolerable misstatement is $575,000 at a 10 percent ARIA No misstatements are expected in the population
M-tolerable misstatement. Enter amounts in the formula to two decimal places XXX Round the sample size up to the nearest whole amount as needed.)
Sample Size

An auditor is determining the appropriate sample size for testing inventory valuation using MUS The population has 3,140 inventory items valued at
Calculate the preliminary sample size.
Select the formula, then enter the amounts and calculate the sample size. (Abbreviation used TM tolerable misstatement Enter amounts in the for
(Click the icon to view the table for determining the confidence factor)
Confidence Factor
4.33
TM as Percentage of Population Value
39.75
ECCEED
Sample Size

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