Question: An auditor had decided to use probability-proportional-to-size (PPS) sampling, also called dollar-unit or cumulative monetary unit (CMU) sampling, in the audit of the client's accounts receivable balance. The auditor discovered 3 misstatements while doing their testing. Complete the spreadsheet below and calculate the total projected misstatement.
Misstatement Recorded Amount Audit Amount Sampling Internal Difference % Projected Misstatement (internal X %)
1. $750 $600 $2,500
2. $1,500 $1,000 $2,500
3. $2,000 $0 $2,500
4. $5,000 $4,000 $2,500