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Use the following information to answer 31-34. In his audit of Daily Company’s accounts receivable, Hayes has decided to use MUS and has established the following parameters: Risk of incorrect acceptance            5%Tolerable misstatement                    $100,000Expected misstatement                     $20,000 The company’s recorded balance for accounts receivable is $2,000,000. Assuming the sample size is 156, calculate the sampling interval.

For private companies, accounting firms are prohibited from providing:

The demand for a good is P= 100 – 5Q. The supply is P= 40 + 3Q. Assuming a perfectly competitive market : a) What is the equilibrium price and quantity?b) What is the consumer surplus? c) What is the producer surplus? d) What is the total wealth?

Which of the following is most likely to be detected by an auditor’s review of an entity’s sales cutoff?

The demand for a good is P= 40 – 3Q. The supply is P= 20 + 2Q. Assuming a perfectly competitive market : a) What is the equilibrium price and quantity?b) What is the consumer surplus? c) What is the producer surplus? d) What is the total wealth?

Assume you have $50,000 and you are willing to invest. You have two choices: a) A safe investment that promises to pay 8% profit after 1 year.b) A risky investment that has a 10% chance you might lose all your money and 90% chance you might receive X amount of money. 1) How much do you expect to get paid for a year in the second investment to be indifferent between two investment choices? (the two investments have the same Expected Profit)2) What is the Risk Premium in the second choices?

Which of the following example words are important to use in your documentation. Please choose all that apply  

If we say a good is “perfectly inelastic”, then:

Please explain the following terms: 1) Renewable portfolio standard2) Capacity factor

The following table describes the TOTAL cost of polluting: Firm 0 units pollution 1 unit pollution 2 units pollution 3 units pollution 4 units pollution A 200 90 40 20 0 B 180 110 50 15 0 C 205 100 45 20 0 a) What are the marginal costs of each unit of pollution abatement? b) The government decides to sell FIVE pollution permits. What do you expect the price to be for the 5th permit? c) The government gives firms B and C 3 permits each (but none to Firm A). How will the three firms trade their permits?                                Show all the work. Explain how the price of the 5th permit is calculated. If there is a trade, what is the price range, and between which firms?