Your CPA firm is conducting the audit of GPA Killer Company for the year ended December 31. You are a staff member on the audit and plan to use PPS to audit GPA Killer's accounts receivable account. The balance at December 31 was $10,000,000 You used 157 sample items and performed the audit procedures listed in the accounts receivable audit program. You noted four misstatements (below) and need to calculate the tainting factors. projected misstatements, allowance for sampling risk, incremental allowance for sampling risk, and upper misstatement limit. Using your responses to question 49, fill in the blanks below necessary to compute the incremental allowance for sampling risk and total incremental allowance. Enter your numeric responses using two decimal points, even if your response is a whole number, with no dollar signs or commas. Incremental Allowance for Sampling Risk: Error Ranked Projected # Misstatements Incremental Change in Reliability Factor Minus One 1 1 0.75 total incremental allowance. Enter your numeric responses using two decimal points, even if your response is a whole number, with no dollar signs or commas. Incremental Allowance for Sampling Risk: Error Ranked Projected # Misstatements Incremental Change in Reliability Factor Minus One 1 0.75 4 0.55 HE 2 0.46 Total Incremental Allowance Your CPA firm is conducting the audit of GPA Killer Company for the year ended December 31. You are a staff member on the audit and plan to use PPS to audit GPA Killer's accounts receivable account. The balance at December 31 was $10,000,000 You used 157 sample items and performed the audit procedures listed in the accounts receivable audit program. You noted four misstatements (below) and need to calculate the tainting factors. projected misstatements, allowance for sampling risk, incremental allowance for sampling risk, and upper misstatement limit. Using your responses to question 49, fill in the blanks below necessary to compute the incremental allowance for sampling risk and total incremental allowance. Enter your numeric responses using two decimal points, even if your response is a whole number, with no dollar signs or commas. Incremental Allowance for Sampling Risk: Error Ranked Projected # Misstatements Incremental Change in Reliability Factor Minus One 1 1 0.75 total incremental allowance. Enter your numeric responses using two decimal points, even if your response is a whole number, with no dollar signs or commas. Incremental Allowance for Sampling Risk: Error Ranked Projected # Misstatements Incremental Change in Reliability Factor Minus One 1 0.75 4 0.55 HE 2 0.46 Total Incremental Allowance
