Consider the population of 15% overstated book value accounting data given in Table 15.1. (See Problem 1 for more discussion about these data.) Using the stated book values to perform your judgment rankings, select a balanced RSS of 20 invoices for auditing using a set size of k = 5. How many cycles m did you need to obtain the RSS? How many invoice book values did you use in total for the judgment rankings leading to the selection of the invoices to audit?
