Step-by-step Instant Solution
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:
- Determine the reliability factor.
- Determine the correct expansion factor.
- Determine the sample size you should use.
- Determine the sampling interval you should use.
Probability Proportional to Size (PPS) Sampling Tables
Table 1: Reliability Factors for Misstatements of Overstatement
Risk of Incorrect...
Paper#9255959 | Written in 27-Jul-2016Price : $17.85