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Question - Assume the following misstatements were found in a PPS sample:
Sample Item
Book Value
Audit Value
1
$650
$585
2
540
0
3
1,900
4
2,200
1,650
5
2,800
2,660
Required - If tolerable misstatement were $50,000 and expected misstatement were $10,000, what conclusion would you reach?
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