Auditors are evaluating an account with a recorded balance of $500,000 using mean-per-unit estimation.This account is comprised of 1,000 individual components.The auditors sampled 100 items and determined a total audited value of $52,500.Using a risk of incorrect acceptance of 10 percent,the auditors determined a precision of $40,000.If the tolerable misstatement is $50,000,which of the following is not true?
A)The estimated recorded balance of this account is $525,000.
B)A 90 percent probability exists that the true population value falls between $460,000 and $540,000.
C)The auditors would conclude that the account balance is fairly stated.
D)The probability that the auditors will incorrectly accept a materially misstated account balance is 10 percent.

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The Answer of Auditors are evaluating an account with a recorded balance of $500,000 using mean-per-unit estimation.This account is comprised of 1,000 individual components.The auditors sampled 100 items and determined a total audited value of $52,500.Using a risk of incorrect acceptance of 10 percent,the auditors determined a precision of $40,000.If the tolerable misstatement is $50,000,which of the following is not true?
A)The estimated recorded balance of this account is $525,000.
B)A 90 percent probability exists that the true population value falls between $460,000 and $540,000.
C)The auditors would conclude that the account balance is fairly stated.
D)The probability that the auditors will incorrectly accept a materially misstated account balance is 10 percent.

Auditors Are Evaluating an Account with a Recorded Balance of $500,000