Your audit sampling program states: the upper misstatement limit is $13,200 and the risk of incorrect acceptance is at the 95% confidence level. This means:
A) there is a 95% chance the actual misstatement is greater than $13,200.
B) there is a 5% chance the actual misstatement is less than $13,200.
C) there is a 95% chance the actual misstatement is less than $13.200.
D) there is a 5% chance the actual misstatement is greater than $13,200.

Question

Quizplus · Accepted Answer

The 95% confidence level indicates that there is a 95% chance the actual misstatement is less than the upper misstatement limit of $13,200.

Your Audit Sampling Program States: the Upper Misstatement Limit Is