Green CA audited the inventory of ABC Company on a sample basis.Green audited a sample of 120 items and found a net overstatement of $600.The audited sample had a recorded value of $12,000.The entire inventory contained 2,400 items with a total book value of $280,000.The projected likely overstatement using the average difference method is ________.
A)$12,000
B)$14,000
C)$48,000
D)$56,000

Question

Quizplus · Accepted Answer

The Answer of Green CA audited the inventory of ABC Company on a sample basis.Green audited a sample of 120 items and found a net overstatement of $600.The audited sample had a recorded value of $12,000.The entire inventory contained 2,400 items with a total book value of $280,000.The projected likely overstatement using the average difference method is ________.
A)$12,000
B)$14,000
C)$48,000
D)$56,000

Green CA Audited the Inventory of ABC Company on a Sample