Keystone Computers \& Networks Ine. (KCN) has 933 accounts receivable, with a total book value of $10,235,457. From that population, Adarns, Barnes \& Co, (ABC). CPAs, selected a sample of 260 accounts (142 unique accounts) for confirmation for the year ended December 31.20X5, as illustrated by the working paper in [5 Schedule B-6. First and second confirmation requests resulted in replies for all but 10 of those accounts. ABC performed alternative procedures on those 10 accounts and noted no exceptions. Or the replies, five had exceptions as described below (with ABC follow-up): 1. The balance of $120,000 is incorrect because we paid that amount in full on December 31.20X5. Follow-rup: An anabsis of the cash meips joumal rewealed that the check had been recetved in the mail on Jamuary 9, 20x6. 2. "Of the balance of $30,000,$330 is ineorrect because on December 19 we returned a printer to Keystone when we found that we didn't need it. We ordered it in the middle of November when we had anticipated a need for it. When we received the printer, we realized it was unnecessary and returned it unopened." Follow-up: An anabsis of the tonsaction revaled that ir was receird by Keystone on December 31, 20X5, and that the adjustment to the acconnt had becn processed on Janwars 2.206. 3. "The balance or $214,000 is correct. and we paid it on January 5 , 19X6." Followup: An anabsis of the cash recipts foumal reveled that the check had been received on Jamuar. 10, 20X6 4. "Or the balance of $130,000,$10,000 is incorrect because it represents goods that we didn't receive until January 5, 20X6." Followip: Inspection of shipping nconds ricals that the ilem was shipped an January 3,206. 5. "Of the account's $18,000 balance, we paid $17,460 and the $540 ( 3 percent of the total) remains unpaid because the Keystone salesperson told us that she would be able to obtain a 'special' discount beyond the normal." Follow-up: While inspection of the sales agreenent indicated no such discount arrangement, discussions with Loren Steele (controller) and Sam Best (president) indicated that the salesperson had inappropriately granted such a discount to the chent. On January 15 of 20X6, they processed the discount and credited the account for $540. Part b. Use Mean Per Unit Sampling instead of Probability Proportion to size. Use: Book Value of Sample =2,826,000 Tolerable Misstatement =$200,000 Risk of incorrect rejection =5%, risk of incorrect acceptance =5% Estimated SD=$500 (may not be needed) You need to calculate the Standard Deviation of the sample and also extrapolate to population. What is the projected misstatement for the population? What is the adjusted allowance for sampling risk? What is the appropriate interval to use? Do we accept or reject