Assume you are planning the confirmation of accounts receivable. There are 3000 customer accounts with a total boolk value of 3,251,768. Tolerable misstatement is set at $200,000, and expected misstatement is 60,000. The risk of incorrect acceptance is 10%, the ratio of expected to tolerable misstatement is 30%, and the ratio of tolerable misstatement to the population is 6.1% (round down to 3% for use in Exhibit 8.7) a. What is the sample size? b. What is the sampling interval c. What is the largest value you can use for a random start d. Using the following list of the first 15 items in your population, a random start of 8,000, and a sample interval of S40,000, identify the items to be included in your Book Vak Cumulaive Amount 3900 130.000 2000 20 00o 25,000 19.000 110000 15 e. What is the probability of selecting each of the following population items, assuming a $40,000 sampling interval? Book Value Probability of Selecion 390p f. Why might the final sample size include fewer logical unites than the computed sample size? g. What is the statistical conclusion if no misstatements are found in the sample? Is the account balance acceptable? Assuming sampling interval of $40,000 and the following findings Aude Value h. Calculate the total estimated misstatement i. Do these results indicate that the account balance as stated is acceptable? j. If the results are not acceptable, what courses of action are available to the auditor