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.
Using an incremental reliability factor of 1.58 (corresponding to the risk of incorrect acceptance of 5 percent), what is the incremental allowance for sampling risk?
A. $5,000.
B. $7,900.
C. $8,700.
D. $23,700.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.