In the audit of One Price Company for the year ended September 30, the auditor set a tolerable misstatement of $ 30,000 at an ARIA of 15%. A PPS sample of 100 was selected from an accounts receivable population that had a recorded balance of $ 2, 150, 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.	$2,230.00	$1,910.00	Pricing error on two invoices.
2.	$5,120.00	-0-	Customer mailed check 9/26; company received check 10/3.
3.	$3,680.00	$1,180.00	Merchandise returned 9/30 and counted in inventory; credit
			was issued 10/6.
4.	$830.00	$780.00	Footing error on an invoice.
5.	$780.00	-0-	Goods were shipped 9/28; customer received goods on 10/2;
		sale was recorded on 9/28.
6.	$3,540.00	$3,520.00	Pricing error on a credit memorandum.
7.	$1,720.00	-0-	Goods were shipped on 9/29; customer received goods 10/3;
				sale was recorded on 9/30.

			Projected
			Misstatement
		Incremental	Plus Incremental
Sampling	Projected	Change in	Allowance for
Tainting	Interval	Misstatement	Confidence Factor	Sampling Risk
0.679	21,500	14,599
0.143	21,500	3,075
0.060	21,500	1,290
0.006	21,500	129
		19,093