Assume a mean-per-unit estimation variables sampling application with a tolerable misstatement of $70,000 and a book value of $700,000. After performing the sampling plan, the auditors calculated an allowance for sampling risk of $45,000 and a point estimate of the population's total audited value to be $650,000. Based on these results, the auditor would:

Conclude that there is too great a risk that the account balance is materially misstated (because the book value is not within the interval created by the estimated total audited value allowance for sampling risk).

Conclude that there is too great a risk that the account balance is materially misstated, because the tolerable misstatement exceeds to the projected misstatement.

Conclude that the population does not contain a material misstatement, because the tolerable misstatement exceeds the allowance for sampling risk.Incorrect

Conclude that the population does not contain a material misstatement, because the total audit value plus or minus tolerable misstatement includes the book value.