Question: AP 1 0 . 8 ( LO 6 ) Evaluating a PPS sample Assume the following misstatements were found in a PPS sample. Sample ItemBook

AP10.8(LO 6) Evaluating a PPS sample Assume the following misstatements were found in a PPS sample.
Sample ItemBook ValueAudit Value1$ 650$ 5852540031,900042,2001,65052,8002,660
Required
Calculate the projected misstatement assuming:
The sampling interval was $1,800.The sampling interval was $2,000.
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.

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