For each of the following independent examples calculate the projected likely misstatement (PLM) using the ratio method and determine whether or not the auditor will demand an adjustment based on the materiality level indicated.

1. Accounts payable general ledger total value is $965,000 on a total of 1,100 accounts. The auditor's sample size is 150 accounts that total $157,600. The audit test indicates a total error of $24,500 overstatement in the sample tested. The audit partner has set performance materiality at 1.0%.

2. Accounts receivable general ledger total value is $580,000 on a total of 1,400 accounts. The auditor's sample size is 150 accounts that total $62,600. The audit test indicates a total error of 2,600 understatement. The audit partner has set performance materiality at 0.5%.