Calculate required sample size

Assignment Help Financial Accounting

Reference no: EM13141453

You are planning to use non statistical sampling to evaluate the results of AR confirmation for the Meridian Company. You have already performed tests of controls for sales, sales returns and allowances, and cash receipts, and they are considered excellent. Because of the quality of the controls, you decide to use an acceptable risk of incorrect acceptance of 10%. There are 3,000 accounts receivable with a gross value of $6,900,000. The accounts are similar in size and well be treated as a single stratum. An overstatement or understatement of more than $150,000 is considered material.

Calculate the required sample size. Assume your firm uses the following non statistical formula to determine sample size:

Sample Size = (Book Value of population/Tolerable misstatement) x Assurance Factor

Reference no: EM13141453

Questions Cloud

Prepare journal entries to record the transactions on april : On August 1, 2010, Pavlova purchased a piece of replacement property for cash. The new land cost $90,000, and the new building cost $380,000. Prepare journal entries to record the transactions on April 1 and August 1, 2010.

Explain power dissipation problems : Power Dissipation Problems, A signal generator outputs a sine wave signal with a frequency of 1000 Hz and an rms voltage of 20.0 V. The output of the spectrum analyzer is connected to a 200 ohm resistor.

Maximizing revenues for specific year : A. Which price should Premium choose, $57 or $60, to maximize its revenues for the year? B. What other factors should Premium consider before making its pricing decision?

Which reaction releases more free energy : Which reaction releases more free energy - the removal of a phosphate group from creatine phosphate or the removal of a phosphate group from ATP.

Calculate required sample size : Calculate required sample size. Assume your firm uses the following non statistical formula to determine sample size.

What is the new pressure of the gas : A 670 mL gas sample at STP is compressed to a volume of 284 mL, and the temperature is increased to 20C. What is the new pressure of the gas in Pa? Answer in units of Pa.

Determine the amount of compensation expense : How should Wesley determine the amount of compensation expense related to the compensatory stock options, if any, that should be recognized in its income statements for 2003, 2004, and 2005? Why?

How to use spool command : How to interactively query a database by using SQL statements and SQL*PLUS commands and how to use spool command to save an interactive session within SQL*PLUS.

Chance-total weight of passengers exceed four thousand pound : What is the approximate probability that the total weight of the passengers exceeds 4000 pounds? Use the four-step process to guide your work.

User Account

All Pages