CPA · Question 39 · Area III: Performing Procedures
An auditor is performing a statistical sample of inventory counts. The recorded book value of the population is $1,000,000. The auditor selects a sample with a book value of $100,000. The audit value of the sample is $98,000. Using ratio estimation, what is the projected misstatement for the population?
Answer options:
$2,000
$20,000
$10,000
$200,000
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