Please help with problem 8-56 and 8-57. Thank you!!!

8-56 106 Assume you are planning the confirmation of accounts receivable. There are 2,000 customer accounts with a total book! value of $5,643,200. Tolerable misstatement is set at $200,000, and expected misstatement is $40,000. The risk of incorrect accep- tance is 30%. The ratio of expected to tolerable misstatement is 20%, and the ratio of tolerable misstatement to the population is 3.5% (round down to 3% for use in Exhibit 8.7) a. What is the sample size? b. What is the sampling interval? c. What is the largest value you can use for a random start? d. Using the following list of the first fifteen items in your popula- tion, a random start of $25,000, and a rounded sample interval of $100,000, identify the items to be included in your sample. Cumulative Cumulative Book Plus Included in BookR andom Start Sample? Book Value Selection Amount (S) Item Random Start Ocvw 3,900 26,000 5,000 130,000 2,000 260,000 100 25,000 19,000 10,000 9,000 2.500 65,000 110,000 6,992 12 14 15 8-57 10 6 Based on the information in 8-56, assume that your sam- pling interval is $100,000. a. What is your statistical conclusion if no misstatements are found in the sample? Is the account balance acceptable? Explain. b. Calculate the total estimated misstatement assuming the fol- lowing misstatements are found in the sample: Misstatement Number Book Value $210,000 9,000 15,000 Audit Value $208,000 8910 14.250 N W c. Do these results indicate that the account balance, as stated. is acceptable? Explain. 1. If the results are not acceptable, what courses of action are available to the auditor? EXHIBIT 8.7 Monetary Unit Sample Size Determination Table Tolerable Misstatement as . Percentage of Population Risk of Incorrect Acceptance Ratle of Expected to Tolerable Misstatement Expected Sum of Talets 50% 5% 0.10 0.20 0.30 0.40 0.50 0.37 0.93 1.80 3.24 5.77 0.20 0.30 0.40 0.50 10% 8% 6% 5% 4% 3% 2% 30 38 50 60 75 100 150 37 46 62 74 92 123 184 47 58 78 93 116 155 232 60 75 100 120 150 200 300 102 135 162 203 270 405 145 193 231 289 385 577 29 39 47 58 77 116 35 43 57 69 86 114 171 44 55 73 87 109 145 217 72 96 115 143 191 286 100 134 160 200 267 400 1924 32 38 48 64 95 28 35 46 556991 137 35 43 57 69 86 114 171 45 56 74 89 11 148 221 61 76 101 121 151 202 302 27 33 41 54 81 46 57 76 113 35 47 56 70 93 139 71 89 118 177 95 119 159 238 35 47 0.69 1.30 2.29 4.00 10% 15% 15% 15% 15% 0.20 0.30 0.40 6 7 9 341 10 12 15 21 0.55 1.03 1.77 3.02 15% 050 1% 0.50% 300 600 368 736 463 925 600 1,199 809 1,618 1,154 2,308 231 461 341 682 433 866 572 1,144 799 1,597 190 380 273 545 681 442 883 6041 .208 161 322 226 451 277 554 707 949 139 278 190 380 230 460 289 578 760 241 323 477 850 210 276 397 9 , 0.46 0.84 0.20 0.30 0.40 0.50 1.42 2.38 OOO 48 020 0.30 0.40 115 58 77 73 97 95 127 0.38 0.69 1.16 1.90 190 380 20 20% 20 20% 20% 25% 25% 25 25 25% 30% 30% 30 30% 35% 35% 35% 35 502 50% 50% 50% 8888888 0.33 0.96 2.55 0.28 0.80 2.03 676 . 139 173 228 340 0.de 0.18 046 102 43 170