Answer:
Explanation:
the fruit cola should be discontinued as it has decreased the net income by$1275000
check the attached file bellow for further explanation
Using PPS sampling, determine the sample size that you want to use for sending accounts receivable confirmations. Draw on the in
formation you learned about PPS sampling in Chapter 10. The book value of accounts receivable before the allowance for doubtful accounts is $71,622,804. You make the following assumptions: You set tolerable misstatement for accounts receivable at $3,500,000. Expected misstatement = $750,000. Risk of incorrect acceptance = 37%. Given these parameters: What do you believe to be appropriate qualitative assumptions for inherent risk and control risk given the risk of incorrect acceptance used?
1 answer:
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