Rome,CPA is conducting a classical variables sampling application on a client's accounts receivable recorded at $3,000,000.These receivables are comprised of 5,000 customer accounts.Assume that Rome identified an acceptable level of the risk of incorrect acceptance of 5%,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.

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The Answer of Rome,CPA is conducting a classical variables sampling application on a client's accounts receivable recorded at $3,000,000.These receivables are comprised of 5,000 customer accounts.Assume that Rome identified an acceptable level of the risk of incorrect acceptance of 5%,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.

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