Evaluating a PPS sample Assume the following misstatements were found in a PPS sample:

Sample Item Book Value Audit Value

1 $ 650 $ 585

2 540 0

3 1,900 0

4 2,200 1,650

5 2,800 2,660

a. Calculate the projected misstatement assuming:

• The sampling interval was $1,800.
• The sampling interval was $ 2,000.