Question

in a monetary-unit sample with a sampling interval of $5,000, an auditor discovers that a selected account receivable with a recorded amount of $10,000 has an audit amount of $8,000. if this were the only error discovered by the auditor, the projected misstatement for this sample would be:

Answer 1

Answer and explanation:

The projected misstatement for this sample would be $2,000. This is calculated by subtracting the audit amount of $8,000 from the recorded amount of $10,000.