The following information relates to a nonstatistical sample used for a price test of inventory:

a. What is the best estimate of the total misstatement?
b. Are these results acceptable, assuming tolerable misstatement is $25,000? Explain.
c. If the results are not acceptable, what possible courses of action can the auditortake?

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Population Sample Number Amun Number Amount Misstatement >$30,000 20 1,600,000 20 $1,600,000 $1,000 $30,000 200 $1,500,000 20 $185,000 $600 Total 220 $3,100,000 40 $2785,000 $1,600