In a Monetary-Unit Sample with a Sampling Interval of $10,000

question 23

Multiple Choice

In a monetary-unit sample with a sampling interval of $10,000, an auditor discovered that a selected account receivable with a recorded amount of $5,000 had an audit amount of $2,000. The projected misstatement of this sample was

• A) $3,000.
• B) $4,000.
• C) $6,000.
• D) $8,000.
• The misstatement amount is 60% with a taint of .60 of the book value of the selected item. The taint is applied to the sampling interval to determine the projected misstatement for the account. The projected misstatement would be $6,000 ($10,000 x .60).

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Definitions:

Per-Worker Production Function

The relationship between the amount of capital per worker in the economy and average output per worker.

Per-Worker Production Functions

A model depicting how the output produced by an average worker changes in response to varying levels of capital or technology per worker.

Tractors Per Worker

A measure of capital intensity, representing the number of tractors available to each worker in the agricultural sector to enhance productivity.

Factors Of Production

The inputs used in the production of goods or services in the process of creating economic value, which include land, labor, capital, and entrepreneurship.