1. If a risk of incorrect acceptance of 15% is specified in the sample design,...
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Accounting
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 sample: Sample Item Book Value Audit Value $ 650 $ 585 540 1,900 2,200 2,800 1,650 2,660
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