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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

FINANCIAL ACCOUNTING
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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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
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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