APPLICATION OF THE AUDIT PROCESS TO THE SALES AND COLLECTION CYCLE
1. Define the sampling interval when using MUS sampling. How is it calculated?
2. Assume that the auditor tested an account receivable with a balance of $3,000 and
determined that the audited value was $2,700. That is, the auditor determined the
receivable was overstated by $300. What is the projected misstatement if the sampling interval is $15,000?
