In the audit of Loan Star Company for the year ended September 30, the auditor set a tolerable misstatement of $50,000 at an

of 10%.

Please see attachment, can you help in calculating sample size without having the confidence factor. The highlighted areas are where I need help

In the audit of Loan Star Company for the year ended September 30, the auditor set a tolerable misstatement of $50,000 at an ARIA of 10%. A PPS sample of 100 was selected from an accounts receivable population that had a recorded balance of $ 1,975,000. The following table shows the differences uncovered in the confirmation process: Accounts Accounts Receivable Receivable per per Records Confirmation Follow-up Comments by Auditor 1. $2,728.00 $2,498.00 Pricing error on two invoices. 2. $5,125.00 -0- Customer mailed check 9/26; company received check 10/3. 3. $3,890.00 $1,190.00 Merchandise returned 9/30 and counted in inventory; credit was issued 10/6. 4. $815.00 $785.00 Footing error on an invoice. 5. $548.00 -0- Goods were shipped 9/28; customer received goods on 10/2; sale was recorded on 9/28. 6. $3,215.00 $3,190.00 Pricing error on a credit memorandum. 7. $1,540.00 -0- Goods were shipped on 9/29; customer received goods 10/3; sale was recorded on 9/30. Requirements a. Calculate the upper misstatement bound on the basis of the client misstatements in the sample. b . Is the population acceptable as stated? If not, what options are available to the auditor at this point? Which option should the auditor select? Explain. Complete the table below to compute the upper misstatement bound. Begin by calculating the amounts needed to calculate the overstatement bound and then, calculate the totals, basic precision and upper misstatement bound. (Enter the tainting proportion to three decimals places, X.XXX. Enter the incremental change in confidence factor to two decimal places, X.XX. Round all other amounts to the nearest whole dollars. Leave unused cells blank.) Projected Misstatement Tainting 0.084 0.694 0.037 0.008 Incremental Plus Incremental Sampling Projected Change in Allowance for Interval Misstatement Confidence Factor Sampling Risk