If the Projected Misstatement in a Nonstatistical Sampling Is $8,000,while

question 79

Multiple Choice

If the projected misstatement in a nonstatistical sampling is $8,000,while the tolerable misstatement is $9,000,what would an auditor likely conclude?

• A)Since the projected misstatement is less than the tolerable misstatement,the account is not misstated.
• B)Since the projected misstatement is less than the tolerable misstatement,the account is misstated.
• C)The risk is high that the account is materially misstated.
• D)The analysis has been improperly performed since the projected misstatement is unequal to the tolerable misstatement.

---

Definitions:

Processing Department

A segment within a factory where a particular process, phase of production, or type of operation is carried out.

Work In Process

Units of product that are only partially complete and will require further work before they are ready for sale to the customer.

Total Amount

The sum total of all quantities or values, usually referring to the final sum on invoices, bills, or financial statements.

Cost Reconciliation Report

A report that reconciles estimated or budgeted costs with actual costs, commonly used in project management and job costing.