b. If a risk of incorrect acceptance of 15% is specified in the sample design, the...
b. If a risk of incorrect acceptance of 15% is specified in the sample design, the sampling interval is $2,000, and five misstatements are found as enumerated above, calculate: 1. Basic precision. 2. The incremental allowance for sampling risk. 3. The upper misstatement limit. Assume the following misstatements were found in a PPS sample: Sample Item, Book Value, Audit Value 1 $ 650 585 2 540 0 3 1,900 0 4 2,200 1,650 5 2,800 2,660 b. If a risk...
1. If a risk of incorrect acceptance of 15% is specified in the sample design, the sampling interval is $2,000, and five misstatements are found as enumerated above, calculate: Basic precision. The incremental allowance for sampling risk. The upper misstatement limit. 2. If tolerable misstatement were $50,000 and expected misstatement were $10,000, what conclusion would you reach based on your results in above? AP10.8 (LO 8) Challenging Evaluating a PPS sample Assume the following misstatements were found in a PPS...
Only b and c. Thank you! AP10.8 (LO 8) Evaluating a PPS sample Assume the following misstatements were found in a PPS sample: Sample Item Book Value Audit Value $ 650 540 1,900 2,200 2,800 $ 585 0 0 1,650 2,660 Required a. Calculate the projected misstatement assuming: • The sampling interval was $1,800. The sampling interval was $ 2,000. b. If a risk of incorrect acceptance of 15% is specified in the sample design, the sampling interval is $2,000,...
Evaluating a PPS sample Assume the following misstatements were found in a PPS sample: Sample Item Book Value Audit Value 1 $ 650 $ 585 2 540 0 3 1,900 0 4 2,200 1,650 5 2,800 2,660 a. Calculate the projected misstatement assuming: The sampling interval was $1,800. The sampling interval was $ 2,000. AP10.8 (LO 8) Challenging Evaluating a PPS sample Assume the following misstatements were found in a PPS sample: Sample Item Book Value Audit Value $ 585 $...
Evaluating a PPS sample Assume the following misstatements were found in a PPS sample: Sample Item Book Value Audit Value 1 $ 650 $ 585 2 540 0 3 1,900 0 4 2,200 1,650 5 2,800 2,660 a. Calculate the projected misstatement assuming: The sampling interval was $1,800. The sampling interval was $ 2,000.