Calculation for PPS Sampling

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  • #180811

    Hey guys! Becker says that the calculation for the sampling interval for PPS sampling is Tolerable Misstatement / Reliability Factor. However, I remember from my audit class in college that the calculation was (Tolerable Misstatement – (Expected Misstatement x Error Expansion Factor)) / Reliability Factor…or something like that.

    Which equation should we know for the exam, and/or which one do the other review courses use?

    Thanks!

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