Below are descriptions of components of the upper limit on misstatements.Indicate,using the correct letter,which component is most closely associated with the description.Each component is associated with only one description.
A.Actual misstatement.B.Projected misstatement.
C.Incremental allowance for sampling risk.
D.Basic allowance for sampling risk.
1___.Provides an estimate of the amount of misstatement that may exist in sampling intervals in which no misstatements were observed.
2___.Determined by multiplying the sampling interval by the tainting percentage.
3___.Determined by taking the difference between the recorded balance and the audited value.
4___.Determined by multiplying the projected misstatement by the incremental change in the confidence factor minus one.
Correct Answer:
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