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:

Cause and Effect

A relationship where one event (the cause) makes another event happen (the effect).

Statistical Analysis

The process of collecting, exploring, and presenting large amounts of data to uncover underlying patterns and trends.

Minnesota Multiphasic Personality Inventory

A widely used standardized psychometric test of adult personality and psychopathology to assist with the diagnosis of mental disorders.

Reading Skills

The abilities that enable a person to decode written text, comprehend, interpret, and critically analyze texts.