‏For each of the following independent examples calculate the projected likely misstatement ( PLM ) using the ratio method and determine what action is required based on the materiality level indicated . 

A. Inventory general ledger value $ 980,000 with 200,400 products . Recorded balance of auditor's sample $ 115,320 for 21,000 products , audit test indicates sample value of $ 113,620  The audit partner has set performance materiality at 1.0 % . 

B. Accounts payable general ledger value $ 865,000 on 1,100 accounts . Recorded balance of auditor's sample $ 127,600 in 150 accounts , audit test indicates sample value of $ 132,100 . The audit partner has set performance materiality at 1,0 % .