World-famous mining mogul Steve Wilsey hired the public accounting firm of Joe Wang Associates, PC, to conduct an audit of his new acquisition, Cougar Goldust, Inc. The gold inventory was scheduled to be taken on November 30. The perpetual records show only the weight of the gold in various inventory bins. Wang has decided to use a variables sampling approach (difference estimation) to determine the correct weight of the gold on hand. (Note that the pricing of the inventory is straightforward because the market value on November 30 determines the price for balance sheet purposes.) There are 4,000 bins in the Cougar warehouse. The bins will serve as the sampling units. Wang's desired level of confidence is 90 percent. The tolerable misstatement is set at 35,000 ounces, and the expected misstate- ment is 10,000 ounces. The perpetual record shows 700,000 ounces on hand. P-9652