Proli Footwear
Determination of Sample Size for Substantive Tests of Property, Plant and Equipment
Using a Formal Nonstatistical Sampling Plan
December 31, 2014
			Number of Items	Amount
Tolerable misstatement for each account balance:
Testing threshold: West & Fair, CPAs, LLC uses 1/3 of tolerable misstatement						d)
Long-Lived Assets Balance:		a)	217
Less: Items exceeding threshold:		b)
Less: Unusual items:
Additions involving interest capitalization
Additions that do not seem appropriate for business
Untested items						E)
Additional items tested		c)
Total items tested
It has been determined that a moderate level of reliance can be placed on other audit procedures for long-lived assets - this results in a moderate other procedures risk-targeted detection risk is 60% II-6 RP
Additional sample size determination =
Untested Items/Testing Threshold * Other Procedures Risk Factor
Untested items E)
Testing Threshold d)
* Other Procedures Risk Factor-per table below f)
Additional items to be tested: c)
West & Fair, CPAs, LLC uses the following table to determine the other procedures risk factor:
Targeted Detection Risk for Long-Lived Assets	Other Procedures Risk Factor
From Schedule II-5	High		Moderate	Low
Very High Below 9%	3.0		2.3	2.0
High 10 - 30%	2.7		2.0	1.6
Moderate 31 - 80%	2.3		1.6 f)	1.2
Low Above 81%	2.0		1.2	1.0
	Above Threshold			Additional Testing
Long-Lived Asset Class	Items		Cost	Items		Cost
Land 4 items	4		1,879,000	0
Buildings 4 items	4		3,464,840	0
Leased Buildings 4 items	4		3,489,988	0
Manufacturing Equipment 15 items	14		13,820,430	4		448,960
Warehouse Equipment 15 items	15		13,795,400	0
Office Equipment 165 items	6		1,883,900	33		465,740
Total items 217 items a)		b)			g)
AUDITOR CONCLUSION:
NOTE TO STUDENTS: If you believe that the number of items tested is inadequate, state the minimum
additional amount to be tested in your conclusion. You should assume that RP will do the additional testing