Question: hi i need help finding the projected mistastements im getting wring. info is provided above Edwards has decided to use probability proportional-to-size (PPS) sampling in


Edwards has decided to use probability proportional-to-size (PPS) sampling in the audit of a client's accounts receivable balance Few, if any, errors of overstatement are expected. Edwards plans to use the following PPS sampling table: 20% 5% RELIABILITY FACTORS FOR OVERSTATEMENTS Risk of Incorrect Acceptance Number of Overstatements 1% 5% 10% 15% 0 4.61 3.00 2.31 1.90 1 6.64 4,75 3.89 3.38 2 8.41 6.30 5.33 4.72 3 10.05 7.76 6.69 6.02 11.61 9.16 8.00 7.27 1.61 3.00 4.28 AN 5.52 6.73 Your answer is correct Calculate the sampling interval and the sample size Edwards should use, given the following information: Tolerable misstatement Risk of incorrect accentare $15,000 Calculate the sampling interval and the sample size Edwards should use, given the following information: Tolerable misstatement Risk of incorrect acceptance Number of misstatements allowed Recorded amount of accounts receivable $15,000 5% 0 $300,000 Sampling interval $ 5000 Sample size 60 e Textbook and Media Calculate total projected misstatement if the following three misstatements were discovered in a PPS sample: Recorded Amount Audit Amount Sampling Interval $1,000 Total Projected Misstatement 1st misstatement $400 $320 $ 2nd misstatement 500 0 1,000 500 3rd misstatement 3,000 2,500 1,000 500 $ 30000 e Textbook and Media
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