Question: PPS SAMPLE SIZE: Use Table 13.8 and the information below to determine your sample size for this test: a The tolerable misstatement is $36 500.

PPS SAMPLE SIZE: Use Table 13.8 and the information below to determine your sample size for this test:

a The tolerable misstatement is $36 500.

b Inherent risk is high, control risk is high, and SpAR confidence is low.

c What would be the effect of doubling the tolerable misstatement? Why?

d The auditor decided to double the tolerable misstatement after the tests were completed, as the test results indicated a rejection of the null hypothesis. Discuss this decision and whether or not it was appropriate.

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