Based on the information in Question 69,the allowance for sampling risk was
A) 2.2%.
B) 5.0%.
C) 7.8%.
D) 10.0%.

Question

Quizplus · Accepted Answer

If the auditor planned a sample size of 80 and found 4 misstatements in the sample, the projected misstatement rate is 5%. If the tolerable misstatement is 10%, then the allowance for sampling risk would be the difference between the projected misstatement rate (5%) and the tolerable misstatement rate (10%), which is 5%. Therefore, the correct answer is B) 5.0%.

Based on the Information in Question 69,the Allowance for Sampling