21-An auditor established a $ 60,000 tolerable misstatement for an asset with an account balance of $ 1,000,000. The auditor selected a sample of every twentieth item from the population that represented the asset account balance and discovered overstatements of $ 3,700 and understatements of $ 200. Under these circumstances, the auditor most likely would conclude that

Group of answer choices

a-There is an unacceptably high risk that the actual misstatements in the population exceed the tolerable misstatement because the total projected misstatement is more than the tolerable mistatement.

b-There is an unacceptably high risk that the tolerable misstatement exceeds the sum of actual overstatements and understatement

c-The asset account is fairly stated because the total projected misstatement is less than the tolerable misstatement.

d-The asset account is fairly stated because the tolerable misstatement exceeds the net of projected actual overstatements and understatements