NONSTATISTICAL SAMPLING Now, let's use non-statistical sampling to test the existence and valuation assertions related to inventory. We will use a stratified sample. Assume that all parts with extended dollar values of greater than $50,000 will be tested. Tolerable Misstatement $155,000 Expected Misstatement $55,000 Desired Confidence Level Moderate Risk of Material Misstatement Low Total gross balance in inventory $5,500,000 Book value of stratum $750,000 Number and dollar value of part numbers 10 parts > $50,000 440 parts > $5,000 but $50,000 750,000 746,500 >$5,000 910,000 894,750 $50,000 440 parts > $5,000 but $50,000 750,000 746,500 >$5,000 910,000 894,750