In evaluating sample results, if the upper misstatement limit is less than or equal to projected misstatement, the sample results support the conclusion that the population book value is not materially misstated.

Question

Quizplus · Accepted Answer

The correct statement is the opposite: if the upper misstatement limit is greater than the projected misstatement, the sample results support the conclusion that the population book value is not materially misstated. The upper misstatement limit exceeding the projected misstatement indicates a potential for material misstatement, thus not supporting the conclusion of no material misstatement.

In Evaluating Sample Results, If the upper Misstatement Limit Is