Alice Rathermel Audited LoHo Company's Inventory Using Sampling

question 136

Multiple Choice

Alice Rathermel audited LoHo Company's inventory using sampling.She examined 120 items from an inventory compilation list and discovered net overstatement of $480.The audited items had a book (recorded) value of $48,000.There were 1,200 inventory items listed,and the total recorded inventory amount was $490,000.What is the projected misstatement using mean-per-unit estimation?

• A) $480.
• B) $576,000.
• C) $10,000.
• D) $480,000.

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Definitions:

Improperly

In a manner that is not suitable, correct, or appropriate according to standards or rules.

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