Allister is auditing a client's accounts balance recorded at $500,000 using monetary unit sampling and determined a sample size of 100 items.The following two misstatements were identified as a result of the substantive tests: Confidence factors for a 5% risk of incorrect acceptance are shown below: What is the incremental allowance for sampling risk?
A) $3,500
B) $5,000
C) $8,500
D) $15,000

Question

Allister is auditing a client's accounts balance recorded at $500,000 using monetary unit sampling and determined a sample size of 100 items.The following two misstatements were identified as a result of the substantive tests:  Confidence factors for a 5% risk of incorrect acceptance are shown below:  What is the incremental allowance for sampling risk?
A) $3,500 
B) $5,000 
C) $8,500 
D) $15,000

Quizplus · Accepted Answer

The Answer of Allister is auditing a client's accounts balance recorded at $500,000 using monetary unit sampling and determined a sample size of 100 items.The following two misstatements were identified as a result of the substantive tests:  Confidence factors for a 5% risk of incorrect acceptance are shown below:  What is the incremental allowance for sampling risk?
A) $3,500 
B) $5,000 
C) $8,500 
D) $15,000

Allister Is Auditing a Client's Accounts Balance Recorded at $500,000