When evaluating the MUS sample results, the auditor calculates the total estimated misstatement in the account balance based on the sampling process using which of the following components?
A) Basic Precision.
B) Projected misstatement for items in lower-stratum.
C) Incremental Allowance for Sampling Error.
D) All of the above.

Question

Quizplus · Accepted Answer

The auditor calculates the total estimated misstatement in the account balance using all three components mentioned in the options: Basic Precision, Projected misstatement for items in lower-stratum, and Incremental Allowance for Sampling Error. Each component has a specific role in the calculation of the estimated misstatement, and together they provide a comprehensive assessment of the accuracy of the account balance. Therefore, the best choice is D, All of the above.

When Evaluating the MUS Sample Results, the Auditor Calculates the Total