Your company is conducting an audit for the year ended Dec 31.
Your senior-in-charge plans to use difference estimation to audit inventory.
All materials are valued on the balance sheet at market close-of-business day.
You have been assigned the following material to audit:
Zinc
Current inventory records	144,019	Tonnes
Material is stored in	5,761	Containers
Sampling Risk is	10.0%
Tolerable misstatement	28,800
Expected misstatement	5,800
Estimated standard deviation	16
You performed the inventory audit of your material by selecting 100 samples. Below are your results.
Difference Number	Inventory Record	Audited Value	Difference	Squared Audit Difference
1	42	37	5	25
2	63	59	4	16
.	.	.	.	.
.	.	.	.	.
.	.	.	.	.
15	7	8	-1	1
16	96	98	-2	4
Total	11,810	11,300	510	126,444
Required:
a. Based on the following information, compute a preliminary sample size.
b. Show the steps (calculations) necessary to obtain the Confidence Interval.
c. Compute the sample results by calculating the Confidence Interval.
d. Based on results, what is your conclusion regarding account?