Which of the following statements is not correct if the actual misstatement is $1,000,the upper limit on misstatement is $10,000,and the tolerable misstatement is $12,000?
A) There is a (1 minus the risk of incorrect acceptance) probability that the true misstatement in the account balance exceeds $10,000.
B) The allowance for sampling risk is $9,000.
C) There is a (1 minus the risk of incorrect acceptance) probability that the true misstatement in the account balance is less than $10,000.
D) The account balance appears to be fairly recorded.

Question

Quizplus · Accepted Answer

The statement in choice A is incorrect because the upper limit on misstatement is $10,000, which means there is a risk of incorrect acceptance that the true misstatement could be less than or equal to $10,000, not exceeding it.

Which of the Following Statements Is Not Correct If the Actual