An auditor uses monetary unit sampling with a sampling interval of $20,000 and detects an item with a recorded amount of $10,000 with an audited value of $4,000. The projected misstatement of the sample is
A) $12,000.
B) $6,000.
C) $10,000.
D) $3,000.

Question

Quizplus · Accepted Answer

The projected misstatement is calculated by taking the difference between the recorded amount and the audited value, which is $10,000 - $4,000 = $6,000. Since the sampling interval is $20,000, the misstatement is projected to the entire interval, resulting in a projected misstatement of $12,000.

An Auditor Uses Monetary Unit Sampling with a Sampling Interval