Could you please help me with this EarthWear Mini-Case? Experiencing extreme difficulty completing it.

From Auditing and Assurance Services, 10th Edition (Messier, Glover, Prawitt) - Chapter 10: Accounts Receivable Tests of Details

Complete the test of details on accounts receivable for the 2016 audit of

EarthWear Clothiers, Inc. The principal test of detail involves sending "confirmations" or letters to

customers so that they can confirm that they owe EarthWear the reported balance. All six customer

accounts receivable balances exceeding $100,000 were targeted for testing. These six balances,

aggregated total of $921,000, were confirmed without exceptions. The remaining accounts are of

similar size and total $7,722,000 and will be tested via audit sampling. Inputs for the sample size

determination were, Desired Confidence Level-95%, Tolerable Misstatement-$600,000, and

Expected Misstatement-$154,440. Based on these inputs, 67 accounts receivable balances were

selected for confirmation requests. The first 63 accounts receivable confirmations have already been

reviewed by other staff members and no errors have been found. The remaining four confirmations

require your review as they were returned with notes from customers indicating a potential

misstatement. Please note that legitimate timing differences do not result in misstatements.

Review the four confirmation responses in the PDF file downloaded from the mini-case website (a link is also provided below). Enter the information into Work Paper 10-1. For each confirmation response, please determine whether the difference noted by the customer represents a misstatement or a timing difference. After reviewing all four confirmations, please complete both the nonstatistical and the statistical evaluation options outlined on Work Paper 10-1 unless your instructor tells you otherwise. Chapter 9 of the text provides guidance on both nonstatistical and statistical evaluation. Please refer to Chapter 9 for a description of how to calculate a sample size and evaluate errors using IDEA.

http://www.mhhe.com/messier10e

After completing both the nonstatistical and statistical evaluation methods, please briefly discuss how the results compare to each other in the space provided on Work Paper10-1. Are the monetary amounts and overall conclusions similar?

When you are finished evaluating the sample results, enter your initials in the yellow box in the upper right-hand corner of Work Paper 10-1 (box indicates "Initial Here").

A B C D E F G H J K L M W N . EARTHWEAR CLOTHIERS 10-1 Evaluation of A/R Confirmations MH December 31, 2016 1 1/9/2019 Results of A/R Confirmations Complete the worksheet below by reviewing the accounts receivable confirmation file contained in the Instructions. Complete the cells below in yellow. If you determine that the difference noted by the Reason(s) for Difference A/R Balance per A/R Balance Difference per (i.e., timing difference, transposition error, cut-off error, mistake, Amount of 8 Customer ID Customer Name clients' records per Customer Customer etc.) Overstatement 9 652-54310 $12,365 $12.356 210-38725 Red Star Health Group.. Museum of Flight $14,235 C........... Indicate reason(s) for difference here. Enter value of any misstatement here. If none, enter 0. 10 SO $14,235 Indicate reason(s) for difference here. Enter value of any misstatement here. If none, enter 0. 11 254-62418 Summit Hills Country Club $24,362 $21,520 $2,842 Indicate reason(s) for difference here Enter value of any misstatement here. If none, enter 0. 12 179-26343 Central States Hotels $18,642 $15,642 $3,000 Indicate reason(S) for difference here, Enter value of any misstatement here. If none, enter 0. 13 63 additional items $880,560 $880,560 SO SO 14 Total Dollar Amount of Items in Sample $950,164 $930,078 $20,086 Net misstatement $0 15 Total Dollar Amount of Items in Sampling Population $7,722,000 16 17 Nonstatistical Evaluation of Errors Book Value Book Value Known or Factual Ratio of Projected 18 Stratum of Stratum of Sample Misstatement Misstatements Misstatement** Evaluation of Test Results 19 >$100,000 $921,000 $921,000 SO 0.0000% SO Enter Evaluation Here 20