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AICPA Exam CPA-Auditing Topic 2 Question 13 Discussion
Actual exam question for
AICPA's
CPA-Auditing exam
Question #: 13
Topic #: 2
[All CPA-Auditing Questions]
Topic #: 2
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:
Suggested Answer:
B
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: .
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