Description of this paper

Loading

Use the following company data and the PPS Sampling Tables 1 & 2-(Answered)

Description

Step-by-step Instant Solution


Question

Use the following company data and the PPS Sampling Tables 1 & 2:

  • The recorded book value of these accounts is $3,460,000.
  • The company has a tolerable error of $63,460.
  • The anticipated error is $13,000.
  • The risk of incorrect acceptance is 5%.
  • The acceptable number of overstatements of misstatements is 2.

Use probability proportional to size (PPS) sampling to do the following:

  1. Determine the reliability factor.
  2. Determine the correct expansion factor.
  3. Determine the sample size you should use.
  4. Determine the sampling interval you should use.

SOLUTIONS

 

Probability Proportional to Size (PPS) Sampling Tables

 

Table 1: Reliability Factors for Misstatements of Overstatement

 


 

Number of

 

Overstatement

 

Misstatements

 


 

Risk of Incorrect...

 

Paper#9255959 | Written in 27-Jul-2016

Price : $16
SiteLock