In a probability-proportional-to-size sample with a sampling interval of $5,000, an auditor discovered that a selected account receivable with a recorded amount of $10,000 had an audit amount of $8,000. If this were the only error discovered by the auditor, the projected error of this sample would be:

Question

Quizplus · Accepted Answer

11ec2ce7_1b7f_2ea7_89bf_ff68995dab80_C1085_00 N/A = not applicable, as the actual difference of $2,000 is used when the recorded amount is larger than the sample interval. Choice "B" is correct. There is a $2,000 projected error in this PPS sample. Choices "A", "C", and "D" are incorrect, based on the above Explanation.

In a Probability-Proportional-To-Size Sample with a Sampling Interval of $5,000