Oceanview Marine Company 21-27 Calculation of Sample Size: Difference Estimation December 31, 2015 Audit Area: Accounts receivable Population: 86 accounts receivable at 12/31/2015 Decision and Facts for Determining Sample Size: Population (number of accounts) (N) = 86 Tolerable misstatement (TM) = Estimated misstatement in the population (E) = 4,000 (overstated) Estimated population standard deviation (SD) = 1,800 Z, (from table below) = Z, (from table below) = Calculation of Sample Size: SD (Z, + Z, ) N = 0.00 TM - E = -4,000.00 (SD (Z, + Z, ) N) / (TM - E) = 0.00 [(SD (Z, + Z, ) N) / (TM - E)]? = 0.00 Sample Size = (round up to whole number)