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Determine sample size using nonstatistical sampling

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Question: Evaluating Sample Results: Nonstatistical Sampling. Finley Gunny is using nonstatistical sampling in the examination of Highway Company's accounts receivable, which were recorded at $350,000. Gunny determined a tolerable misstatement of $15,000 and a sample size of 49 items.

Required: a. How does Gunny determine sample size using nonstatistical sampling?

b. If the items selected by Gunny had an aggregate recorded balance of $50,000 and an aggregate audited balance of $45,000, calculate the estimated audited balance.

c. What would Gunny conclude with respect to the fairness of Highway's accounts receivable?

Reference no: EM131625928

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