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Question - Jordan Thomas is using MUS to examine a client's accounts receivable balance. Using a sample size of 100 items and a sampling interval of $12,300, Thomas identified the following misstatements:
Item
Recorded Balance
Audited Value
1
$15,000
$12,500
2
10,000
4,000
3
3,000
2,000
Required - Calculate the upper limit on misstatements assuming a risk of incorrect acceptance of (1) 5 percent and (2) 10 percent.
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