The recorded inventory balance for Faulk Company was $1,000,000 and comprised 2,500 customer accounts. Required: For each of the following independent sets of conditions, determine the appropriate sample size for the audit of Faulk's inventory using classical variables sampling (mean-per-unit estimation). (RIA= risk of incorrect acceptance, RIR = risk of incorrect rejection, TM = tolerable misstatement, EM = expected misstatement, SD = standard deviation.) (Roundup your answers to the nearest whole numbers.) a. RIA = 5%, RIR = 5%, TM= $50,000, EM= $20,000, SD = $40. b. RIA= 10%, RIR = 5%, TM= $50,000, EM= $20,000, SD = $40. RIA= 10%, RIR 10%, TM= $50,000, EM= $20,000, SD = $40. RIA = 5%, RIR = 5%, TM = $30,000, EM= $20,000, SD = $40. RIA= 5%, RIR = 5%, TM= $50,000, EM= $10,000, SD = $40. RIA= 5%, RIR = 5%, TM = $50,000, EM= $10,000, SD = $30. C. d. e. f. Sample Size
The recorded inventory balance for Faulk Company was $1,000,000 and comprised 2,500 customer accounts. Required: For each of the following independent sets of conditions, determine the appropriate sample size for the audit of Faulk's inventory using classical variables sampling (mean-per-unit estimation). (RIA= risk of incorrect acceptance, RIR = risk of incorrect rejection, TM = tolerable misstatement, EM = expected misstatement, SD = standard deviation.) (Roundup your answers to the nearest whole numbers.) a. RIA = 5%, RIR = 5%, TM= $50,000, EM= $20,000, SD = $40. b. RIA= 10%, RIR = 5%, TM= $50,000, EM= $20,000, SD = $40. RIA= 10%, RIR 10%, TM= $50,000, EM= $20,000, SD = $40. RIA = 5%, RIR = 5%, TM = $30,000, EM= $20,000, SD = $40. RIA= 5%, RIR = 5%, TM= $50,000, EM= $10,000, SD = $40. RIA= 5%, RIR = 5%, TM = $50,000, EM= $10,000, SD = $30. C. d. e. f. Sample Size
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 29RQSC
Related questions
Question
![The recorded inventory balance for Faulk Company was $1,000,000 and comprised 2,500 customer accounts.
Required:
For each of the following independent sets of conditions, determine the appropriate sample size for the audit of Faulk's inventory
using classical variables sampling (mean-per-unit estimation). (RIA= risk of incorrect acceptance, RIR = risk of incorrect rejection, TM =
tolerable misstatement, EM = expected misstatement, SD = standard deviation.) (Roundup your answers to the nearest whole
numbers.)
a.
RIA = 5%, RIR = 5%, TM= $50,000, EM= $20,000, SD = $40.
b. RIA= 10%, RIR = 5%, TM= $50,000, EM= $20,000, SD = $40.
RIA= 10%, RIR 10%, TM= $50,000, EM= $20,000, SD = $40.
RIA = 5%, RIR = 5%, TM = $30,000, EM= $20,000, SD = $40.
RIA= 5%, RIR = 5%, TM= $50,000, EM= $10,000, SD = $40.
RIA= 5%, RIR = 5%, TM = $50,000, EM= $10,000, SD = $30.
C.
d.
e.
f.
Sample Size](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faee0d9cd-2730-4c97-b186-de60c230706d%2Fc2ff9886-28f1-444a-8901-3bad89c51851%2Fwv741pj_processed.png&w=3840&q=75)
Transcribed Image Text:The recorded inventory balance for Faulk Company was $1,000,000 and comprised 2,500 customer accounts.
Required:
For each of the following independent sets of conditions, determine the appropriate sample size for the audit of Faulk's inventory
using classical variables sampling (mean-per-unit estimation). (RIA= risk of incorrect acceptance, RIR = risk of incorrect rejection, TM =
tolerable misstatement, EM = expected misstatement, SD = standard deviation.) (Roundup your answers to the nearest whole
numbers.)
a.
RIA = 5%, RIR = 5%, TM= $50,000, EM= $20,000, SD = $40.
b. RIA= 10%, RIR = 5%, TM= $50,000, EM= $20,000, SD = $40.
RIA= 10%, RIR 10%, TM= $50,000, EM= $20,000, SD = $40.
RIA = 5%, RIR = 5%, TM = $30,000, EM= $20,000, SD = $40.
RIA= 5%, RIR = 5%, TM= $50,000, EM= $10,000, SD = $40.
RIA= 5%, RIR = 5%, TM = $50,000, EM= $10,000, SD = $30.
C.
d.
e.
f.
Sample Size
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