If the Projected Misstatement in a Nonstatistical Sampling Is $8,000,while

question 79

Multiple Choice

If the projected misstatement in a nonstatistical sampling is $8,000,while the tolerable misstatement is $9,000,what would an auditor likely conclude?

• A)Since the projected misstatement is less than the tolerable misstatement,the account is not misstated.
• B)Since the projected misstatement is less than the tolerable misstatement,the account is misstated.
• C)The risk is high that the account is materially misstated.
• D)The analysis has been improperly performed since the projected misstatement is unequal to the tolerable misstatement.

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Definitions:

Journalized

The act of recording a transaction in an accounting journal.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.

Income Statements

A financial statement that shows a company's revenues and expenses over a specific period, culminating in the net income or net loss.

Trial Balance

A financial worksheet aggregating all ledger balances into equivalent totals of debit and credit columns.