Decisions and Facts for Determining Sample Size:

Book Value of the recorded population: 1,762,682.00 (86 accounts)

Book value of individually material accounts: 1,166,116.00 (13 accounts)

(test all material accounts)

Book value of all remaining accounts (BV):

(test only a sample)

Tolerable Misstatement (TM): 40000

Confidence Factor (CF): 2.0 (from table below)

n = (sample size accounts < tolerable misstatement): (round to whole number)

Note: n = (BV x CF) / TM

Confidence Factor for Determining Sample Size:

Confidence of
Risk of Incorrect Acceptance Confidence Factor
Sample

37% 63% 1

14% 86% 2

5% 95% 3
Justify/explain your decision:

Other factors considered:

SAMPLE SELECTION: NONSTATISTICAL SAMPLE

Individually materal accounts greater than tolerable misstatement of: 40,000

Amount

Customer Name Confirmed

1 Anthony Underwriters 117,990.00

2 Bischoff john 113,655

3 Borst Robet 155,690

 4 Divine Dan 121,456

5 Geyor Robert 68,904

6 to 13 Various 588,421.00

Total 706,411.00

Sample below tolerable misstatement:

Sampling Interval = Number of Accounts / Sample Size =

(round to whole number)

Amount

Customer Name (Random Starting Point: 1st account) Confirmed

1 James Abbott 21,345.00

6 to 30 Various XXX

Total
 Nonstatistical Sampling (continued)

December 31, 2018

Calculation of Projected Misstatement:

Misstatements in individually significant accounts:

Net misstatement =

(misstatements are not projected since tested 100%)

Sample Projected Misstatement:

(net misstatement/$ sample size) x ($ population size*) =

Total projected misstatement =

* The population size for projection is the book value of the accounts less than tolerable misstatement.

Calculation of Actual Allowance for Sampling Risk:

 Tolerable misstatement = 40,000

Less: Projected misstatement =

Allowance for sampling risk =