Sample Evaluation Upper Misstatement Limit Computation
Add a sample's projected misstatement and sampling-risk allowance, then combine that upper limit with known misstatements for evaluation against tolerable misstatement.
Description
A projected sample misstatement and sampling-risk allowance can be combined with other known errors for an upper-limit comparison.
A projected sample misstatement and sampling-risk allowance can be combined with other known errors for an upper-limit comparison.1
The returned values include Exceeds tolerable misstatement, Remaining against tolerance, Upper limit. The How section below explains the calculation, input rules and interpretation.
When to use Sample Evaluation Upper Misstatement Limit Computation
Use Sample Evaluation Upper Misstatement Limit Computation when you need to evaluate the supplied records under the calculation and evidence rules below. No confidence allowance, sample projection, qualitative assessment or opinion is derived.
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 Sample Evaluation Upper Misstatement Limit Computation 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 otherKnownMisstatements, projectedMisstatement, samplingRiskAllowance, tolerableMisstatement using the field table and calculation rules, then run the tool.
- Read exceedsTolerable, remainingAgainstTolerance, upperLimit. 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 |
|---|---|---|---|
| otherKnownMisstatements | Other known misstatements | number; minimum: 0 | Required |
| projectedMisstatement | Projected misstatement | number; minimum: 0 | Required |
| samplingRiskAllowance | Sampling-risk allowance | number; minimum: 0 | Required |
| tolerableMisstatement | Tolerable misstatement | number; minimum: 0 | Required |
Require four finite nonnegative values in matching units, checked-sum upper and return signed headroom plus exceeds flag upper>tolerable. Equality does not exceed.
upper=projected+allowance+otherKnown; remaining=tolerable−upper Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| exceedsTolerable | Exceeds tolerable misstatement | boolean |
| remainingAgainstTolerance | Remaining against tolerance | number |
| upperLimit | Upper limit | number; minimum: 0 |
{
"input": {
"otherKnownMisstatements": 5000,
"projectedMisstatement": 15000,
"samplingRiskAllowance": 10000,
"tolerableMisstatement": 45000
},
"output": {
"exceedsTolerable": false,
"remainingAgainstTolerance": 15000,
"upperLimit": 30000
}
}Limitations and assumptions
No confidence allowance, sample projection, qualitative assessment or opinion is derived.
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 Ratio Projection Misstatement Calculator: Ratio projection scales a signed sample difference to the population. Positive differences describe recorded overstatement; negative differences describe understatement. For a complementary task, 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.
References
Similar or alternative tools
- Ratio Projection Misstatement Calculator
Ratio projection scales a signed sample difference to the population. Positive differences describe recorded overstatement; negative differences describe understatement.
- 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.