accounting hw 495132

8000000 320000 120000 0.05 1 12000 2400 2 9000 6000 3 60000 0 4 1200 640 Auditing Chapter 9 Account Balalnce Tolerable Misstatement Expected Misstatement Risk of Incorrect Acceptance Sample Size Sampling Interval Error Number Book Value Audit Value Statistical Problem Save this spreadsheet using the naming convention “yourfirst&lastname.xlsx” You will use the spreadsheet labled “Calculation” to complete the problem. All calculations must be done using the spreadsheet You will need the tables in chapter 8 of the text. Conclusion: Requirement (a) Requirement (b) Requirement (c) Daily and Johnson, CPAs were conducting the audit of Garner Tool Supply for the year ended December 31. Cindy Steward, senior-in-charge of the audit, plans to use MUS to audit Garner’s inventory account. The balance in the inventory account at December 31 was $8,000,000. Requirements: a) Based on the information in the spreadsheet, calculate the required MUS sample size b) Steve Brents, staff accountant, used the sample items selected in part (a) and performed the audit procedures listed in the inventory audit program. He noted the misstatements show in the spreadsheet in part (b). Using the information, calculate the upper misstatement limit. c) Based on the results in part (b) What is the conclusion that Steve Brents should make concerning the inventory account balance? NOTE THAT ALL CALCULATIONS SHOULD BE ACCOMPLISHED USING THE SPREADSHEET! I WILL CHECK THE FORMULAS AND THEY WILL ACCOUNT FOR 50% OF THE POINTS. ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????