https://www.chegg.com/homework-help/questions-and-answers/following-independent-examples-calculate-projected Maps Chegg Practice test Midter... AccessSheridan NWP Assessment PL. S VitalSource Booksh. S Quizze Home Study tools My courses My books My folder Career Life It's urgent. I need it ASAP. For each of the following independent examples calculate the projected ely 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% Show transcribed image text Expert Answer w Anonymous answered this 1.172 answers Situation 1: Was this answer helpful? o Po Projected likely misstatement (Misstatement in Sample Population Size)/Sample Size =(24500 965000)/157600 = $150015.86 Performance materiality is at 1.0 % Le 5 9650 ($ 965000 * 1.0%) Since Projected likely misstatement is more than performance materiality therefore auditor will demand adjustment Situation 2: Projected likely misstatement (Misstatement in Sample Population Size/Sample Size =(2600 5800001/62600 = $24089.46 Performance materiality is at 0.5 % Le S 2900 (5580000* 0.5%) Since Projected likely misstatement is more than performance materiality therefore auditor will demand adjustment Type here to search 114 53 F4 4 E F6 Prtscn Home FR 19 @ # $ % A & ) 2 3 5 6 7 8 9 72 W E R T Y U A S D F G H J K N B N M