Use dus for audit of ac rec - expected misstatements rate


Question:
Use DUS for audit of a/c rec.
• TE= $50000
• Beta risk = 5%
• Dollar unit sample=50
• Expected misstatements rate for zero errors = 100%
• BV = $473000
• Number of open a/c balances = 760

Required: (Show all calculations)
a) Calculate upper & lower error limits.
b) Is BV materially misstated?

Recorded Value Audited Value
1530 1683
3390 2712
220 352
280 490
2350 1175
200 80

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Financial Accounting: Use dus for audit of ac rec - expected misstatements rate
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