You are assigned to audit accounts payable for a manufacturing client. As part of the planning, your manager sets a tolerable misstatement amount of+/- $125,000. Your review of unpaid invoices indicates an understatement error of $25,253 from a sample of $675,467. The population value of A/P is $5,241,687 at October 31st. The amount of any additional adjustment required by the auditor (rounded) is:
A) $0.
B) $131,998.
C) $6,998.
D) $125,000.

Question

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The Answer of You are assigned to audit accounts payable for a manufacturing client. As part of the planning, your manager sets a tolerable misstatement amount of+/- $125,000. Your review of unpaid invoices indicates an understatement error of $25,253 from a sample of $675,467. The population value of A/P is $5,241,687 at October 31st. The amount of any additional adjustment required by the auditor (rounded) is:
A) $0.
B) $131,998.
C) $6,998.
D) $125,000.

You Are Assigned to Audit Accounts Payable for a Manufacturing