Audit Sampling Flashcards
1
Q
PPS - Upper Limit on Missstatement
A
= projected misstatement + basic precision + incremental allowance
2
Q
PPS - Allowance for sampling risk
A
= basic precision + incremental allowance
3
Q
PPS - Sample Size
A
population book value / sampling interval size
or
(population book value x reliability factor) /
(tolerable misstatement - (expected misstatement x expansion factor))
4
Q
PPS - Sample interval
A
population book value / sample size
5
Q
PPS - Basic precision
A
reliability factor x sampling interval
