AP10.8 (L08) Evaluating a PPS sample Assume the following misstatements were found in a PPS sample: Sample Item Book Value Audit Value 1 $ 650 $ 585 N 540 3 1,900 4 2,200 1,650 5 2,800 2,660 Required a. Calculate the projected misstatement assuming: a. The sampling interval was $1,800. b. The sampling interval was $2,000. b. If a risk of incorrect acceptance of 15% is specified in the sample design, the sampling interval is $2,000, and five misstatements are found as enumerated above, calculate: a. Basic precision. b. The incremental allowance for sampling risk. c. The upper misstatement limit. c. If tolerable misstatement were $50,000 and expected misstatement were $10,000, what conclusion would you reach based on your results in (b) above