Ratio Projection Misstatement Calculator
Project a sample's signed audit difference to a population using ratio estimation. Positive results are projected overstatements and negative results are projected understatements.
Description
Ratio projection scales a signed sample difference to the population.
Ratio projection scales a signed sample difference to the population. Positive differences describe recorded overstatement; negative differences describe understatement.1
The returned values include Audited difference, Projection exceeds tolerance, Projected misstatement, Projection ratio. The How section below explains the calculation, input rules and interpretation.
When to use Ratio Projection Misstatement Calculator
Use Ratio Projection Misstatement Calculator when you need to evaluate the supplied records under the calculation and evidence rules below. No sampling-risk allowance, representativeness or permitted netting is supplied.
Prepare source-backed observations and the applicable engagement policy before entering facts. Use consistent monetary units and periods. Supply all boolean evidence flags explicitly, and treat a successful screen as a reason to continue professional review.
How to use Ratio Projection Misstatement Calculator and understand its results
- Prepare source-backed observations and the applicable engagement policy before entering facts. Use consistent monetary units and periods. Supply all boolean evidence flags explicitly, and treat a successful screen as a reason to continue professional review.
- Enter auditedSampleValue, populationValue, recordedSampleValue, tolerance using the field table and calculation rules, then run the tool.
- Read auditedDifference, exceedsTolerance, projectedMisstatement, projectionRatioPercent. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| auditedSampleValue | Audited sample value | number; minimum: 0 | Required |
| populationValue | Population value | number; minimum: 0 | Required |
| recordedSampleValue | Recorded sample value | number; minimum: 0 | Required |
| tolerance | Tolerance | number; minimum: 0 | Required |
Require finite nonnegative monetary values/tolerance, population>0 and0<recorded≤population. Audited may exceed recorded. Return signed difference,100×difference/recorded, finite projection and flag abs(projection)>tolerance.
difference=recorded−audited; projected=difference×population/recorded Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| auditedDifference | Audited difference | number |
| exceedsTolerance | Projection exceeds tolerance | boolean |
| projectedMisstatement | Projected misstatement | number |
| projectionRatioPercent | Projection ratio (percent) | number |
{
"input": {
"auditedSampleValue": 95000,
"populationValue": 1000000,
"recordedSampleValue": 100000,
"tolerance": 10000
},
"output": {
"auditedDifference": 5000,
"exceedsTolerance": true,
"projectedMisstatement": 50000,
"projectionRatioPercent": 5
}
}Limitations and assumptions
No sampling-risk allowance, representativeness or permitted netting is supplied.
Numeric inputs, where present, must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing fields without a declared default, extra fields, wrong value types and violations of the calculation rules are input errors. A successfully returned false flag is an evaluated outcome; its meaning is explained above.
Alternative or Complementary methods
Use MUS Tainting Factor Projected Misstatement: Monetary-unit-sampling tainting expresses a sampled item's signed difference as a fraction of book value. Significant items use actual rather than interval-projected difference. For a complementary task, use Sample Evaluation Upper Misstatement Limit Computation: A projected sample misstatement and sampling-risk allowance can be combined with other known errors for an upper-limit comparison.
References
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Ratio Projection Misstatement Calculator — tool.io
Similar or alternative tools
- MUS Tainting Factor Projected Misstatement
Monetary-unit-sampling tainting expresses a sampled item's signed difference as a fraction of book value. Significant items use actual rather than interval-projected difference.
- Sample Evaluation Upper Misstatement Limit Computation
A projected sample misstatement and sampling-risk allowance can be combined with other known errors for an upper-limit comparison.