Using the same population as the previous, assume the following differences were uncovered in the confirmation process:

Customer Number Per Records Per Confirmation Follow-up by Auditor

324 $ 9,124 $8,965 Computation error on price of shipment

333 7,014 0 Shipment to customer on December 28th, FOB shipping point

received by customer on January 2nd

337 6,104 5,104 Footing error on invoice

349 2,799 0 Customer mailed $2,799 check on December 28, company received the check on January 6

Required:

a) Assuming a sample size of 100, ARIA of 15%, and tolerable misstatement of $40,000, compute the upper misstatement bound on the basis of the client misstatement in the sample.

b) Should the population be accepted or rejected?