NONSTATISTICAL SAMPLING EVALUATION WORKSHEET
CLIENT AND YEAR-END: Danforth Paper Company
PREPARED BY AND DATE:
REVIEWED BY AND DATE:
A/R RECORDED BALANCE: $2,760,000
RECORDED BALANCE OF ACCOUNTS AUDITED 100% $465,000
RECORDED BALANCE OF ACCOUNTS TO BE SAMPLED: $2,295,000
TOLERABLE MISSTATEMENT $100,000
# OF ACCOUNTS 7,320
# OF ACCOUNTS TO BE TESTED 100% 23
# OF ACCOUNTS TO BE SAMPLED 77
EVALUATION OF RESULTS
OVERSTATEMENTS
Item Recorded Audited Misstatement Msstmt.
Number Value Value Amount Percent
12 5120 4820 300 0.0586
19 485 385 100 0.2062
33 1250 250 1000 0.8000
35 3975 3875 100 0.0252
51 1850 1825 25 0.0135
59 4200 3780 420 0.1000
74 2405 02405 1.0000
Totals 19285 14935 4350
Projected Error – Average misstatement amount method
Items over $10,000 33,000$
Items under $10,000
Average misstatment = $4350/77 56.49
(sample errors ÷ sample size)
x 7297 412,233
Total projected misstatement 445,233$
Projected Error – Proportionate amount method
Items over $10,000 33,000$
Items under $10,000
Sample misstatements 4350
Sample book value ÷81500
Average misstatement 0.053
Sample population (2,760,000 – 465,000)
x2,295,000 122,494
Total projected misstatement 155,494$
MONETARY UNIT SAMPLING APPLICATION WORKSHEET
CLIENT AND YEAR-END: Danforth Paper Company
PREPARED BY AND DATE:
REVIEWED BY AND DATE:
A/R RECORDED BALANCE:
$2,760,000
RECORDED BALANCE OF ACCOUNTS AUDITED 100% $465,000
RECORDED BALANCE OF ACCOUNTS TO BE SAMPLED: $2,295,000
TOLERABLE MISSTATEMENT $100,000
# OF ACCOUNTS 7,320
# OF ACCOUNTS TO BE TESTED 100% 23
# OF ACCOUNTS TO BE SAMPLED 77
SAMPLING INTERVAL 29,805
$2,295,000/77 (rounded)
EVALUATION OF RESULTS
OVERSTATEMENTS Projected
Incremental Misstatement
Tainting Change in Plus Incremental
Misstatement Item Recorded Audited Misstatement Missatement Sampling Projected Confidence Allowance for
Number Number Value Value Amount Percent Interval Misstatement
Factor1Sampling Risk
174 2405 02405 1.000 29,805 29,805 1.75 52,159
459 4200 3780 420 0.100 29,805 2,981 1.40 4,173
512 5120 4820 300 0.059 29,805 1,746 1.36 2,375
635 3975 3875 100 0.025 29,805 750 1.33 997
751 1850 1825 25 0.014 29,805 403 1.30 524
Totals 4350 65,674 106,158
Basic Precision (29805 *3.00) 29,805 89,415
Overstatement Bound From Sample 195,573
Misstatement of 100% Sampled Items 33,000
Total Overstatement Bound $228,573
Tolerable Misstatement: $100,000
1 – Confindence Factors Obtained from Table 17-7 for ARIA of 5%:
0 1 2 3 4 5 6 7 8
3.00 4.75 6.30 7.76 9.16 10.52 11.85 13.15 14.44
Actual Number of Misstatements
Confidence Factors