EarthWear Red Star Health Group 3520 Lone Star DR Dallas TX 75212-6301 Dear Customers

Value of population? Value of Sample? Known or Factual Misstatement? Ratio of Misstatements = Factual Misstatements /Value of Sample?

Projected Misstatement = Ratio of Misstatements x $ value of population? Evaluation of Test Results – Discuss whether or not you feel A/R is fairly stated?

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EarthWearRed Star Health Group3520 Lone Star DRDallas TX 75212-6301Dear Customers:Please examine the accompanying statement carefully and either confirm itscorrectness or report any differences to our auditors:Willis & AdamsP.O. Box 4080Boise, Idaho 79443-4080who are auditing our financial statements.Your prompt attention to this request will be appreciated. An envelope isenclosed for your reply. Please do not send your payments to the auditors.Sincerely,Carol MckayController, EarthWear ClothiersCONFIRMATION:The balance receivable from us for $12,365 as of December 31, 2016, is correct except asnoted below:Our accounting records show a balance of $12356.CUSTOMER NAMEDate 1/21/2017By David allessPrint Name: David AllenPosition: Accounts Payable ClerkP.O. Box 787 – Boise, Idaho 83845

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