In an Accounts Receivable Sample with a Sampling Interval of $5,000

question 163

Short Answer

In an accounts receivable sample with a sampling interval of $5,000, an auditor identifies a recorded amount of $10,000 which has an audited amount of $8,000.If this was the only error that the auditor discovered, what would the projected misstatement for this sample be?

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Definitions:

Nonrefundable Up-front

Payment made in advance that cannot be reclaimed, typically associated with the initial stages of a contract or agreement.

Initiation Fees

Fees charged to join a membership or service, often seen in clubs or subscription-based services.

Telecommunications Services

Services provided by companies that enable communication over distance, such as phone and internet services.

Errors Discovered

The identification of mistakes in the financial information or transactions of an organization.