Question
Please show the work. Thank you. An auditor had decided to use probability-proportional-to-size (PPS) sampling, also called dollar-unit or cumulative monetary unit (CMU) sampling, in
Please show the work. Thank you.
An auditor had decided to use probability-proportional-to-size (PPS) sampling, also called dollar-unit or cumulative monetary unit (CMU) sampling, in the audit of the clients accounts receivable balance. The auditor discovered 3 misstatements while doing their testing. Complete the spreadsheet below and calculate the total projected misstatement. Misstatement
| Misstatement | Recorded Amount | Audited Amount | Sampling Internal | Difference | Tainting Percentage(%) | Projected Misstatement (Internal X % |
| 1 | 750 | 600 | 2500 | |||
| 2 | 1500 | 1000 | 2500 | |||
| 3 | 2000 | 0 | 2500 | |||
| 4 | 5000 | 4000 | 2500 |
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Auditing And Assurance Services
Authors: Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay Thibodeau
9th International Edition
1266285997, 978-1266285998
