Bama's accounts receivable were recorded at $600,000.Assume that the auditor determined a sample size of 20 customer accounts and prepared confirmations to those customers.One misstatement was determined; an account recorded at $10,000 was confirmed to have a balance of $5,000. What is the appropriate sampling interval?
A) $60.
B) $250.
C) $500.
D) $30,000.

Question

Quizplus · Accepted Answer

The sampling interval is calculated by dividing the total recorded amount by the sample size: $600,000 / 20 = $30,000.

Bama's Accounts Receivable Were Recorded at $600,000