The recorded book value of these accounts is $3,460,000.
Question # 00295473
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Updated on: 05/25/2016 12:09 AM Due on: 06/24/2016
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
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Solution: The recorded book value of these accounts is $3,460,000.