Data relevant to the December 31, 2025, audit of accounts receivable in two of your clients is presented in the tabulation below. Client's book value Population size Desired risk of incorrect acceptance Desired risk of incorrect rejection Tolerable misstatement Estimated standard deviation (a) Your answer is incorrect. Company X sample size Company X Company Y sample size $90,000 1,000 20% 10% $9,000 $50 Company Y $200,000 190 2,000 384 30% Determine sample size: Determine sample size for each company using classical variables MPU estimation. 5% $10,000 $25

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Data relevant to the December 31, 2025, audit of accounts receivable in two of your clients is presented in the
tabulation below.
Client's book value
Population size
Desired risk of incorrect acceptance
Desired risk of incorrect rejection
Tolerable misstatement
Estimated standard deviation
(a)
* Your answer is incorrect.
Company X sample size
Company X
$90,000
Company Y sample size
1,000
20%
10%
$9,000
$50
Company Y
$200,000
190
2,000
Determine sample size: Determine sample size for each company using classical variables MPU estimation.
384
30%
5%
$10,000
$25
Transcribed Image Text:Data relevant to the December 31, 2025, audit of accounts receivable in two of your clients is presented in the tabulation below. Client's book value Population size Desired risk of incorrect acceptance Desired risk of incorrect rejection Tolerable misstatement Estimated standard deviation (a) * Your answer is incorrect. Company X sample size Company X $90,000 Company Y sample size 1,000 20% 10% $9,000 $50 Company Y $200,000 190 2,000 Determine sample size: Determine sample size for each company using classical variables MPU estimation. 384 30% 5% $10,000 $25
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