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# Chap009-App - Chapter 09 Appendix Chapter 09 Appendix True...

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Chapter 09 - Appendix Chapter 09 Appendix True / False Questions 1. Increasing the expected misstatement for a probability-proportional-to-size sample increases the required sample size. True False 2. Probability-proportional-to-size sampling is especially efficient for populations with high misstatement rates. True False 3. The upper limit on misstatement in a probability-proportional-to-size sample plan consists of the total of the projected misstatement and the tolerable misstatement. True False 4. A normally distributed sample is assumed when using probability-proportional-to-size sampling. True False 5. An increase in the scope of analytical procedures may result in a lower allowable risk of incorrect acceptance for a substantive test of details. True False 9-App-1

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Chapter 09 - Appendix Multiple Choice Questions 6. In a probability-proportional-to-size sample with a sampling interval of \$10,000, an auditor discovered that a selected account receivable with a recorded amount of \$5000 had an audited amount of \$4,000. If this were the only misstatement discovered by the auditor, the projected misstatement of this sample would be: A. \$1,000. B. \$2,000. C. \$5,000. D. \$10,000. 7. In a probability-proportional-to-size sample with a sampling interval of \$10,000, an auditor discovered that as selected account receivable with a recorded amount of \$12,000 had an audited amount of \$9,000. If this were the only misstatement discovered by the auditor, the projected misstatement of this sample would be: 8. In a PPS sample, the most likely misstatement in the population is equal to the: 9. When no misstatements are identified in a PPS sample, the upper limit on misstatement equals. 9-App-2
Chapter 09 - Appendix Assume the following relating to a PPS sample: Projected Misstatement = \$20,000. Basic Precision = \$16,000. Incremental Allowance = \$4,500. Tolerable Misstatement = \$34,000. 10. The upper limit on misstatement equals. A. \$20,000. B. \$20,500 C. \$40,500. D. \$74,500. 11. The allowance for sampling risk is equal to: 12. The most likely amount of misstatement in the population is equal to: 13. Which statement is most proper for evaluating the results of this PPS sample?

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Chap009-App - Chapter 09 Appendix Chapter 09 Appendix True...

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