a. Using difference estimation, calculate confidence limits for a to e from the information provided.

b. In general, what is the effect on the upper confidence limits (increase, decrease, no effect, or cannot determine without additional information) of each of the following independent changes, assuming the other components are held constant?

c. Compare your answers in a to those given in part 5-35.a.

d. Determine the appropriate adjustment entry for each of a to e in part a. Where an entry would be inappropriate, write “none.”

Question 5-35.a:

a. Calculate confidence limits for a to e using difference estimation from the information provided:

Population size Confidence level Sum of sample errors (net) Standard deviation Sample size Materiality a C d 2,000 2,000 5,000 5,000 1,000 90% 80% 80% 80% 99% 320 320 1,750 1,750 250 17 17 30 40 50 100 100 400 400 50 13,000 9,000 30,000 35,000 15,000