1. What are the major differences in the 14 steps used in nonstatistical sampling for tests of details of balances versus for tests of controls and substantive tests of transactions?
2. The 2,620 inventory items described in Question 17-14 are listed on 44 inventory pages with 60 lines per page. There is a total for each page. The client’s data are not in machine-readable form. Describe how a monetary unit sample can be selected in this situation.
Question 17-14
An auditor is determining the appropriate sample size for testing inventory valuation using MUS. The population has 2,620 inventory items valued at $12,625,000. The tolerable misstatement is $500,000 at a 10% ARIA. No misstatements are expected in the population. Calculate the preliminary sample size
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