In a monetary-unit sample with a sampling interval of $10,000, an auditor discovered that a selected account receivable with a recorded amount of $5,000 had an audit amount of $2,000. The projected misstatement of this sample was:
A)$3,000.
B)$4,000.
C)$6,000.
D)$8,000.

Question

Quizplus · Accepted Answer

The projected misstatement is calculated by taking the difference between the recorded amount and the audit amount, then projecting it over the sampling interval. The difference is $3,000 ($5,000 - $2,000), and since the sampling interval is $10,000, the projected misstatement is $3,000 * ($10,000 / $5,000) = $6,000.

In a Monetary-Unit Sample with a Sampling Interval of $10,000