Question: The auditor performs a statistical test of inventory and has done enough work such that the upper misstatement limit and most likely misstatement are determined.

The auditor performs a statistical test of inventory and has done enough work such that the upper misstatement limit and most likely misstatement are determined. When determining whether or not the account has material misstatements, does the auditor consider (a) the known errors or (b) the most likely errors-even though the amount is not precisely known?

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