When completing a variables sampling plan, an auditor's evaluation is based on the relationship between and among a number of factors, including recorded account balance, estimated total population value, tolerable error, the desired allowance for sampling risk, and the achieved allowance for sampling risk. The following table contains data for the above factors.

Required:

For each case, indicate whether the recorded account balance can be accepted as fairly stated, or not accepted, and why. If an account balance is not accepted as fairly stated, determine the proper adjusted book value.

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Recorded account balance Estimated population value Tolerable error Desired allowance for sampling risk Achieved allowance for sampling risk Case 1 2 3 $260,000 $255,000 $217,000 $238,000 $235,000 $235,000 $223,000 $220,000 $20,000 $37,500 $18,000 $12,000 $18,000 $10,000 $15,000 $32,000 $22,000 $15,000 $12,000 $20,000