In a Monetary-Unit Sample with a Sampling Interval of $5,000,an

question 51

Multiple Choice

In a monetary-unit sample with a sampling interval of $5,000,an auditor discovers that a selected account receivable with a recorded amount of $10,000 has an audit amount of $8,000.If this were the only error discovered by the auditor,the projected misstatement for this sample would be

• A) $5,000.
• B) $4,000.
• C) $2,000.
• D) $1,000.
• Since the item sampled is greater than the sampling interval, the factual error of $2,000 is equal to the projected error.

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Definitions:

Imported Clothing

Apparel produced in one country and brought into another for sale.

Correlation Analysis

A statistical method used to assess the strength and direction of the relationship between two or more variables.

Formal Reports

Structured documents that present information and analysis to assist in decision-making, often following a specific format.

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Brief communications designed to convey information or findings in a less structured and formal manner, often used for internal business communications.