In a Probability-Proportional-To-Size Sample with a Sampling Interval of $10,000,an

question 21

Multiple Choice

In a probability-proportional-to-size sample with a sampling interval of $10,000,an auditor discovered that a selected account with a book value of $6,000 had an audited value of $4,000.The projected misstatement is:

• A)$2,000.
• B)$3,333.
• C)$6,000.
• D)$10,000.

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Definitions:

Physical Inventory

An actual count of all the goods on hand at the end of an accounting period.

Single-Step Income Statement

A simplified financial statement format that calculates net income by subtracting total expenses from total revenues in one step.

Statement of Stockholders' Equity

A financial document that shows changes in the equity section of a company's balance sheet, including stock transactions and retained earnings.

Fiscal Year

A one-year period used for financial reporting and budgeting purposes, which doesn't necessarily align with the calendar year.