Assume that an account with a recorded balance of $5,000 has an audited balance of $3,000.Using MUS,if the sampling interval is $1,500,the projected misstatement would be
A) $600.
B) $900.
C) $2,000.
D) $3,000.

Question

Quizplus · Accepted Answer

The projected misstatement is calculated by taking the difference between the recorded balance and the audited balance ($5,000 - $3,000 = $2,000). Since the sampling interval is $1,500, the entire difference is projected as a misstatement.

Assume That an Account with a Recorded Balance of $5,000