Explain what is meant by basic precision. How is it$$ determined?

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Part $1$

Begin by defining basic precision.

A$.$

Basic precision is the upper limit when no misstatements are found in the$$ sample, and represents the minimum allowance for sampling risk inherent in the sample.

B$.$

Basic precision is a method of projecting from the sample to the population to estimate the population$$ misstatement, commonly by assuming that misstatements in the unaudited population are proportional to the misstatements found in the sample.

C$.$

Basic precision is the lower limit when no misstatements are found in the$$ sample, and represents the maximum allowance for sampling risk inherent in the sample.

D$.$

Basic precision is the estimate of the largest likely overstatement in a population at a given$$ ARIA, using monetary unit sampling.

E$.$

None of the above.