An auditor established a $60,000 tolerable misstatement for an asset with an account balance of $1,000,000.The auditor selected a sample of every twentieth item from the population of 1,000 items that represented the asset account balance and discovered overstatements of $3,700 and understatements of $200.Under these circumstances, what would the auditor most likely would conclude?

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The Answer of An auditor established a $60,000 tolerable misstatement for an asset with an account balance of $1,000,000.The auditor selected a sample of every twentieth item from the population of 1,000 items that represented the asset account balance and discovered overstatements of $3,700 and understatements of $200.Under these circumstances, what would the auditor most likely would conclude?

An Auditor Established a $60,000 Tolerable Misstatement for an Asset