pps sampling

Project Description:

unit 4 pps sampling
edwards has decided to use probability-proportional-to-size sampling, sometimes called dollar-unit sampling, in the audit of a client's accounts
receivable balance. few, if any, errors of overstatement are expected. edwards expects to use the following pps sampling table:

number of overstatements 1% 5% 10% 15% 20%
0 4.61 3.00 2.31 1.90 1.61
1 6.64 4.75 3.89 3.38 3.00
2 8.41 6.30 5.33 4.72 4.28
3 10.05 7.76 6.69 6.02 5.52
4 11.61 9.16 8.00 7.27 6.73


a. identify the advantages of using the pps sampling over classical variables sampling.



b. calculate the sampling interval and the sample size edwards should use, given the following
information:

total misstatement $15,000
risk of incorrect acceptance 5%
number of misstatements allowed 0
recorded amount of accounts receivable $300,000






c. calculate total projected misstatement if the following three misstatements were discovered in a pps sample:

recorded amount audit amount sampling interval
1st misstatement $400 $320 $1,000
2nd misstatement $500 0 $1,000
3rd misstatement $3,000 $2,500 $1,000
Skills Required:
Project Stats:

Price Type: Negotiable

Expired
Total Proposals: 2
1 Current viewersl
13 Total views
Project posted by:

Proposals

Proposals Reputation Price offered
  • 4.4
    31 Jobs 22 Reviews
    $40 in 0 Day
  • 4.8
    546 Jobs 386 Reviews
    $0 in 0 Day