You are auditing accounts receivable for a small company and have found the following results:

1. Use ratio projection to project your results.
2. Suppose the tolerable misstatement for accounts receivable is $200,000.

• 1. What is the conclusion the auditor can make at this time?
  2. What should the auditor do now?

Number and Size of Client Accounts 1,202 accounts $1,000 Book Value of Stratum $ 948,378 $ 777,504 Book Value of Sample $ 59,175 $ 36,400 Audit Value of Sample $ 51,256 $ 34,400