In this part of your project you will complete substantive testing 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, 68 accounts receivable balances were selected for confirmation requests. The first 64 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 factual misstatements. The Confirmation files are located in the Unit 3 Project Instructions. 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 customer is a factual misstatement, record the amount of difference in the "Amount of Factual Misstatement" column.

Customer ID Customer Name A/R Balance per clients' records|A/R Balance per Customer|Difference per Customer Reason(s) for|Difference Amount of Factual Misstatement 652-54310 Red Star Health Group 210-38725 Museum of Flight 254-62418 Summit Hills Country Club 179-26343 Central States Hotels 63 additional items Total Dollar Amount of Items in Sample $0 $0 $0 Net misstatement $0 Total Dollar Amount of Items in Sampling Population $7,722,000 Nonstatistical Evaluation of Errors $ Value of population $ value of Sample Known or Factual Misstatement Ratio of Misstatements = Factual Misstatements / $ Value of Sample Projected Misstatement = Ratio of Misstatements x $ value of population Evaluation of Test Results - Discuss whether or not you feel A/R is fairly stated. Total Projected Misstatement $0