Romo,CPA Performed Nonstatistical Sampling to Examine the Inventory Balances of Jones

question 60

Multiple Choice

Romo,CPA performed nonstatistical sampling to examine the inventory balances of Jones Company.The sample included 125 of the total 1,250 items with a recorded value of $550,000.Romo determined the expected misstatement to be $25,000 and the tolerable misstatement to be $40,000.The sample had a recorded value of $54,000 and an audited value of $52,000.What conclusion did Romo draw regarding the account balance?

• A) Conclude that the account balance is fairly stated, since the estimated misstatement is greater than the expected misstatement.
• B) Conclude that the account balance is not fairly stated, since the estimated misstatement is greater than the tolerable misstatement.
• C) Conclude that the account balance is not fairly stated, since the estimated misstatement is less than the expected misstatement.
• D) Conclude that the account balance is fairly stated, since the estimated misstatement is less than the tolerable misstatement.

---

Definitions:

Dark Triad

A term in psychology that refers to the personality traits of narcissism, Machiavellianism, and psychopathy, often related to socially malevolent behavior.

Relationships

Connections or associations between people, based on emotional bonds, interactions, or social ties.

Empathy

The ability to understand and share the feelings of another, putting oneself in their shoes emotionally.

Compassion

The emotional response to perceiving suffering and involves an authentic desire to help alleviate that suffering.