In a Monetary-Unit Sampling Plan, the Upper Misstatement Limit Is

question 37

Multiple Choice

In a monetary-unit sampling plan, the upper misstatement limit is $11,200 and the risk of incorrect acceptance is 5%. This means that

• A) Tolerable misstatement is $11,200.
• B) There is a 95% chance that the actual misstatement in the account is $11,200 or more.
• C) There is a 95% chance that the actual misstatement in the account is $11,200.
• D) There is a 95% chance that the actual misstatement in the account is $11,200 or less.