Problem: 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
|
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, and five misstatements are found as enumerated above, calculate:
- Basic precision.
- The incremental allowance for sampling risk.
- The upper misstatement limit.
c. If tolerable misstatement were $50,000 and expected misstatement were $10,000, what conclusion would you reach based on your results in (b)?
What stops you for getting in touch with us? Approach our professional Sampling Risk Assignment Help tutors right now and avail exciting discounts and freebies. On-time delivery and faultless academic content are the spices of the dish to the students, who are enrolled with us!
Tags: Sampling Risk Assignment Help, Sampling Risk Homework Help, Sampling Risk Coursework, Sampling Risk Solved Assignments