DEPARTMENT OF ACCOUNTANCY
UNIVERSITY OF ILLINOIS
Charles DeGarmo _______, Brian Hwang_______, Jared Marciando____,
DDS Sampling Procedures
In this memorandum, our team will attest to four key assertions made by Dave’s Dating
Specifically, DDS asserts the accuracy, completeness and existence of
its clients' age, income, high school graduate information and marital status.
In order to
properly attest to DDS’ assertions, our team first determined and justified the degree of
tolerable materiality for each category.
Next, we developed our expectations for the 2007
database using outside resources and the form D-1 statistics.
Finally, we created a
sampling plan and strategy for each category.
When clients browse through DDS’ database, they expect that the age of other clients is
As such, our team believes that +/- 5 years appropriately quantifies a threshold
for materiality because we do not expect the clientele age to change so drastically in such
a short time period.
If the average age falls outside of our threshold, we will allocate
resources to investigate the underlying reason for the substantial increase or decrease in
According to a recent survey, 58% of singles say their acceptable age gap is between 0-5
years when looking for a prospective partner
In 2006, DDS recorded an average age of
Consequently, we expect that the average age of DDS’ clients in 2007 to
range between 37.1 years and 47.1 years.
In general, our team expects the average age of
clients to increase over the year for two key reasons.
First, the aging of the “Baby
Boomer” generation should increase the average age of the population
divorce rates lead to an influx of older individuals into the dating industry
From the client database in 2007, we calculated an average age of 45.3 years.
calculated age is consistent with our expectations, we believe that the assertion regarding
the accuracy of clients' age poses a relatively low risk for material misstatement.