A$.$

Decrease the sample size. When the auditor decreases the sample$$ size, sampling error is reduced if the rate of misstatements in the reduced$$ sample, their dollar$$ amount, and their direction are similar to those in the original sample. Decreasing the sample$$ size, therefore, may satisfy the$$ auditor's tolerable misstatement requirements.

B$.$

Adjust the account balance. When the auditor concludes that an account balance is materially$$ misstated, the client may be willing to adjust the book value.

C$.$

Perform expanded audit tests in specific areas. If an analysis of the misstatements indicates that most of the misstatements are of a specific$$ type, it may be desirable to restrict the additional audit effort to the problem area.

D$.$

Increase the sample size. When the auditor increases the sample$$ size, sampling risk is reduced if the rate of misstatements in the expanded$$ sample, their dollar$$ amount, and their direction are similar to those in the original sample. Increasing the sample$$ size, therefore, may allow the auditor to conclude that the population is acceptable.

E$.$

Give

an

unqualified opinion this$$ year, but extensively document the areas where the population contained$$ misstatements, so that going forward the client can make the necessary adjustments.

F$.$

Refuse to give an unmodified opinion. If the auditor believes the recorded amount in accounts receivable or any other account is not fairly$$ stated, it is necessary to follow at least one of the above alternatives or to qualify the audit opinion in an appropriate manner.

G$.$

Request the client to correct the population. In some cases the$$ client's records are so inadequate that a correction of the entire population is required before the audit can be completed.