You have just completed the accounts receivable con¬ firmation process in the audit of Danforth Paper Company Ltd., a paper supplier to retail shops and commercial users.

Following are the data related to this process:

The following are the results of the confirmation procedures:

Required —
Evaluate the results jpf the pionstatistical sample. Consider both the direct implications of the misstatements found and the effect of using a sample.

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Accounts receivable recorded balance Number of accounts A nonstatistical sample was taken as follows: All accounts over $10,000 (23 accounts) 77 accounts under $10,000 Materiality Inherent and control risk are both high. No relevant analytical procedures were performed. $2,760,000 7,320 $465,000 $81,500 $100,000