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Kaela Stevens is auditing Turbo Ltd, an existing client, for the year ended 30 June 2018. Turbo's accounts receivable was recorded at $4 000 000 and comprised more than 1000 customer accounts. However, Turbo's 10 largest customer balances comprised more than 25 per cent of the recorded accounts receivable. As a result, Kaela is considering the use of dollar-unit-sampling.
Required:
Problem 1: Outline four factors Kaela should consider in determining the sample size for accounts receivable, and indicate how she would determine the value to place on these factors
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