Which of the following components of the upper limit on misstatement will exist in all MUS sampling applications,including those for which no misstatements are found?
A) Basic allowance for sampling risk.
B) Computed allowance for sampling risk.
C) Incremental allowance for sampling risk.
D) Projected misstatement.

Question

Quizplus · Accepted Answer

The basic allowance for sampling risk is an inherent component of the upper limit on misstatement in MUS sampling applications and is calculated regardless of whether misstatements are found or not. The computed and incremental allowances for sampling risk and projected misstatement are dependent on the presence and magnitude of misstatements detected in the sample.

Which of the Following Components of the Upper Limit on Misstatement