Question: In a monetary-unit sample with a sampling interval of $5,000, an auditor discovers that a selected account receivable with a recorded amount of $10,000 has

In a monetary-unit sample with a sampling interval of $5,000, an auditor discovers that a selected account receivable with a recorded amount of $10,000 has an audit amount of $8,000. If this were the only error discovered by the auditor, the projected misstatement for this sample would be

A. $5,000

B. $4,000

C. $2,000

D. $1,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

In a monetary unit sample with a sampling interval of $22,700, an auditor discovered that a selected account receivable witha recorded amount of $8,500 had an audit amount of $1,700. Calculate the...

In a monetary-unit sample with a sampling interval of $5,000, an auditor discovers that a selected account receivable with a recorded amount of $1,000 has an audit amount of $800. If this were the...

see the attachment. please finish the requirements of module 4-5, Go to www .cengage.com/accounting/rittenberg for the Ford and Toyota materials. Source and Reference Ford 10-K Ford 10-K and Toyota...

I wanted to know if anyone can help with this writing assignment for auditing class MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question (2 points...

The firm of Le and Lysius was conducting the audit of Coomes Molding Corporation for the fiscal year ended October 31. Michelle Le, the partner in charge of the audit, decides that MUS is the...

Biltrite Bicycles' recorded additions to factory equipment increased approximately 20% from 2019 to 2020. The recorded additions for 2020 totaled $9,000,000. Although controls over factory equipment...

Subject: AUDIT AND ASSURANCE Answer all the MCQ's. Choose the correct option for each question 17. In a probability-proportional-to-size(PPS) sample with a sampling interval of $10,000, an auditor...

7. As a result of sampling procedures applied to test of controls, an auditor incorrectly assesses control risk lower than appropriate. The most likely explanation for this situation is that A. the...

Chapter 9 Quiz Note : The material contained within these pages is taken directly from your textbook, Computerized Auditing Using ACL Data Analytics . Alterations were made only for formatting and...

Organii-tech Inc. is financed 60% with equity and 40% with debt. Currently, its debt has a before-tax interest rate of 10%. Organii-tech's common stock trades at $15 per share and its most recent...

Assess whether it is possible for a siphon system to operate, as shown. Chloroform (40 C, sg = 1.452, psat = 62 kPa (abs)) is to be drained via a DN 50 Sch Std steel pipe. Provide a specific...

how does a rise in an inflation impact rate of return and growth rate and how does that ultimately affect stock price?

When starting discussions about a service which should occur first? Group of answer choices A kick - off meeting A review of the software Interview clients Talk to vendors