[1] Based on the information provided above, calculate the sample size for the customer balances for confirmation testing. Additionally, document your calculation for the sampling interval.

Sample Size
Sampling Interval

Sampling interval calculation:

[2] Complete the following table based on the appropriate guidance and calculations. You will find that the Chapter 10 slides will help you with these calculations.

Error	Book Value			Audit Value		Difference		Tainting Factor	Sampling Interval	Projected Misstatement
1	$400			$320						$
2	$500			$0						$
3	$3,000			$2,500						$
					Total Projected Misstatement					$
		Allowance For Sampling Risk (Basic Precision Factor of 3)								$
Incremental Allowance for Sampling Risk:
Error #	Ranked Projected Misstatements				Incremental Change in Reliability Factor Minus One
					0.75					$
					0.55					$
					Total Incremental Allowance					$
					Total Upper Misstatement Limit					$

[3] Based on your answer to [2], what is your final conclusion based on the testing performed? Do you agree with Jamies assessment that the accounts receivable balance is fairly stated?

[4] Ignoring your previous responses, assume that Jamies testing had different results. Recompute the table below based on these new results.

Error	Book Value			Audit Value		Difference		Tainting Factor	Sampling Interval	Projected Misstatement
1	$400			$320						$
2	$500			$300						$
3	$2,000			$1,500						$
4	$10,000			$0						$
					Total Projected Misstatement					$
		Allowance For Sampling Risk (Basic Precision Factor of 3)								$
Incremental Allowance for Sampling Risk:
Error #	Ranked Projected Misstatements				Incremental Change in Reliability Factor Minus One
					0.75					$
					0.55					$
					0.46					$
					Total Incremental Allowance					$
					Total Upper Misstatement Limit					$

[5] Based on your answer to [4], what is your final conclusion based on the testing performed? Do you agree with Jamies assessment that the accounts receivable balance is fairly stated?