In a monetary-unit sample with a sampling interval of $5,000,an auditor discovers that a selected account receivable with a recorded amount of $10,000 has an audit amount of $8,000.If this were the only error discovered by the auditor,the projected misstatement for this sample would be
A) $5,000.
B) $4,000.
C) $2,000.
D) $1,000.
Since the item sampled is greater than the sampling interval, the factual error of $2,000 is equal to the projected error.

Question

Quizplus · Accepted Answer

The factual error is $2,000 ($10,000 recorded - $8,000 audited), and since the account is larger than the sampling interval, the projected misstatement is the same as the factual error, $2,000.

In a Monetary-Unit Sample with a Sampling Interval of $5,000,an