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.