In a monetary-unit sample with a sampling interval of $10,000,an auditor discovered that a selected account receivable with a recorded amount of $5,000 had an audit amount of $2,000.The projected misstatement of this sample was
A) $3,000.
B) $4,000.
C) $6,000.
D) $8,000.
The misstatement amount is 60% with a taint of .60 of the book value of the selected item. The taint is applied to the sampling interval to determine the projected misstatement for the account. The projected misstatement would be $6,000 ($10,000 × .60).

Question

Quizplus · Accepted Answer

The projected misstatement is calculated by applying the taint factor to the sampling interval, which in this case is $10,000 × 0.60 = $6,000. Therefore, the projected misstatement of the sample is $6,000.

In a Monetary-Unit Sample with a Sampling Interval of $10,000,an