You are planning to use monetary unit sampling (MUS)to evaluate accounts receivable for Rose Company.The accounts receivable account totals $4,000,000.You have assessed a risk of incorrect acceptance of 10 percent,a tolerable misstatement of $200,000,and an expected error of $40,000.
a.Calculate the sample size and sampling interval.
b.Regardless of your answer to (a),use a sample size of 66 and the related sampling interval to calculate the upper limit on misstatement assuming you found the following differences.

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The Answer of You are planning to use monetary unit sampling (MUS)to evaluate accounts receivable for Rose Company.The accounts receivable account totals $4,000,000.You have assessed a risk of incorrect acceptance of 10 percent,a tolerable misstatement of $200,000,and an expected error of $40,000.
a.Calculate the sample size and sampling interval.
b.Regardless of your answer to (a),use a sample size of 66 and the related sampling interval to calculate the upper limit on misstatement assuming you found the following differences.

You Are Planning to Use Monetary Unit Sampling (MUS)to Evaluate