The auditors of Kansas Corporation wish to use a structured approach to nonstatistical sampling to evaluate the reasonableness of the accounts receivable. Kansas has 30,000 receivable accounts with a total book value of $5,100,000. The auditors have assessed the combined level of inherent and control risk at a moderate level and believe that their other substantive procedures are so limited as to require a maximum risk assessment. After considering the overall audit plan, the auditors believe that the tests tolerable misstatement is $86,500.

Please refer to the chart below: Risk that other Substantive Procedures will fail to detect a Material Misstatement

Combined Assessment of inherent and Control RiskMaximumMinimumLowMaximum 3.02.31.9Slightly below Maximum2.72.01.6Moderate 2.31.61.2Low1.91.21.0

Calculate the required sample size. Include the equation you use to calculate the sample size.