D.Rome,CPA is conducting a classical variables sampling application on a client's accounts receivable recorded at $3,000,000.These receivables are composed of 5,000 customer accounts.Assume that Rome identified an acceptable level of the risk of incorrect acceptance of 5 percent,determined a sample size of 100,and confirmed the accounts with the client's customers.Rome's substantive procedures indicated that the average audited value was $590 per account.
a.Determine the sample estimate of the client's accounts receivable.
b.If the standard deviation of sample estimates is $30,calculate the precision.
c.Calculate the precision interval.

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The Answer of D.Rome,CPA is conducting a classical variables sampling application on a client's accounts receivable recorded at $3,000,000.These receivables are composed of 5,000 customer accounts.Assume that Rome identified an acceptable level of the risk of incorrect acceptance of 5 percent,determined a sample size of 100,and confirmed the accounts with the client's customers.Rome's substantive procedures indicated that the average audited value was $590 per account.
a.Determine the sample estimate of the client's accounts receivable.
b.If the standard deviation of sample estimates is $30,calculate the precision.
c.Calculate the precision interval.

DRome,CPA Is Conducting a Classical Variables Sampling Application on a Client's