The auditors of Landi Corporation wish to use a structured approach to nonstatistical sampling to evaluate the reasonableness of the accounts receivable. Landi has 13,500 receivable accounts with a total book value of $2,630,000. 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 $60,500. Use Figure 9-13 to determine the reliability factor.

Calculate the required sample size

FIGURE 9.13 Reliability Factors for Nonstatistical Sampling Plan Note: This table is applicable when the auditors expect few misstatements in the population