 confidence is going to be here. So if we have a high assess risk of material misstatement and a high desired level of confidence, then we're going to have a higher number that we're going to be used as the confidence factor in this case 2.9. If we have a high assess risk of material misstatement and a moderate desired level of confidence, then we'll have a lower factor, high assess risk of material misstatement and a low desired confidence. Then we have a lower factor if if we have a moderate and then of course in a high desired level of risk we're at this number if we have moderate and then a desired We're at this number and so and so forth and you can see what the desire or what the effect would be in the formula given Those numbers here in the confidence fact factor section of the formula Calculate these sample results Racial projection method so we can so we're gonna have two methods that we could use to calculate the sample results This will be the ratio project in projection method apply the misstatement ratio to In the sample to the population so we're gonna get the misstatement ratio in the sample apply it to the population It would look something like this assume the auditor finds $1,000 misstatement in a sample of 10,000 so we have a $1,000 misstatements in the sample of 10,000 the misstatement ratio then is 1,000 over 10,000 or 10% now if we apply that to the population we could say well, what if the population? totals 300,000 the projected misstatement would then be 30,000 because we're gonna take that 300,000 times the 10% and get the 30,000 So that's the ratio projection method not the only method though because we could use the difference Projection method projects the average misstatement of each item in the sample to all items in the population For example, assume the misstatement in a sample is 100 items That total $400 so 100 items which total $400 is the misstatement for an average misstatement of $4 So we have the $4 which is the 400 divided by 100 and the population contains 15,000 items The projected misstatement would then be 60,000 or the $4 times the 15,000 items so it's going to be the difference projection method