Below is the information from the PPS example that we did manually in class.

The auditors wish to test the valuation of accounts receivable in the audit of Desert Enterprises of Bullhead City. The client has $500,000 of total recorded receivables, composed of 850 accounts. The auditors have determined the following:

Tolerable misstatement $25,000

Risk of incorrect acceptance 5%

Expected misstatement $2,000

Assume that the auditors have tested the sample and discovered three misstatements:

Book Value Audited Value

$ 50 $ 47

800 760

8,500 8,100

Required: Work this problem (that was done manually in class) using ACL. Note the following differences:

TEXT	ACL
PPS sampling	Monetary
Risk of incorrect acceptance	Confidence
Tolerable misstatement	Materiality
Expected misstatement	Expected Total Errors
Sampling interval	Interval

Open up any project that has a table. Input the proper information into ACL. Then copy and paste your ACL output into your WORD file that you are submitting.

Then calculate and document the:

(1) Required sample size.

(2) Sampling interval.

(3) Projected misstatement.

(4) Basic precision.

(5) Incremental allowance.

(6) Upper limit on misstatement.