A Client's Inventory Is Recorded at $300,000 and Is Comprised

question 68

Multiple Choice

A client's inventory is recorded at $300,000 and is comprised of 1,000 items.If auditors examined a sample of 200 items and found a total misstatement of $20,000 (overstatement) ,what is the estimated audited balance for inventory?

• A) $20,000
• B) $100,000
• C) $200,000
• D) $400,000

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Definitions:

Initial Value

The starting value of a financial variable before any changes, such as interest or depreciation, are applied.

Percent Change

The measure of how much a quantity grows or shrinks compared to its previous value, often expressed as a percentage.

Equity Mutual Fund

A type of mutual fund that invests primarily in stocks, aiming to provide investment returns that correlate with the performance of the stock market.

Bond Mutual Fund

A fund that invests in bonds, providing investors with diversification and the potential for income.