Problem 2 (58 pts) Take the accounts receivable population shown on the next page and perform the following (using sampling without replacement and an estimate of the population standard deviation of the recorded amounts of $30).

a. Determine the sample size for a classical statistical sample using mean estimation. Assume a tolerable misstatement of $2,000, a risk of incorrect rejection of 20%, and a risk of incorrect acceptance of 10%. (12 pts)

b. Take the sample using random sampling. I.e. use either a random number table or a random number generator (can get off the web). In your answer please describe how you selected the sample, how you got the random numbers and include the table you used. (8 pts)

c. Assume you have audited your sample and the recorded and audited amounts are the same except for the following: (8 pts)

Account number	Recorded amount	Audited amount	Diff
1	218	118	100
3	200	130	70
16	196	190	6
20	211	0	211
24	190	150	40
27	224	37	187
41	187	178	9
56	190	290	-100
68	202	0	202
69	207	407	- 200
82	178	187	- 9
117	200	222	-22
126	173	373	-200
129	176	180	-4
143	198	98	100
199	183	189	-6

d. Calculate an estimate of the population audited value and also calculate the projected misstatement (10 pts)

e. Calculate an achieved allowance for sampling risk (10 pts)

f. Indicate whether the sampling results are acceptable or unacceptable. Explain your reason. (10 pts)