Based on the information in Problem 10-43, assume that your sampling interval is $100,000.

Required

a. What is your statistical conclusion if no misstatements are found in the sample? Is this acceptable? Explain.

b. Calculate the most likely misstatement and upper misstatement limit and prepare a summary like the one illustrated in Exhibit assuming the following misstatements are found in the sample:

c. Are these results acceptable? Explain.
d. If the results are not acceptable, what courses of action are available toyou?

5% Risk of Assessing Control Risk Too Low 5% Tolerable Rate, 1% Expected Rate 100 90 80 70 60 50 40 30 20 10 t) 50 800 3,200 20,000 1,000,000 Population Size Percent Sample Size to Population Size 66.00000% 10.37500% 0.46500% 0.00093%