3. An auditor has finished performing substantive tests of a clients inventory account and has calculated the projected misstatement. To decide whether the inventory account is fairly presented, the auditor should compare the projected misstatement to the:

Please add checkmark next to the correct answer(s).

1 sum of the actual misstatements identified in the inventory account.

2 allowance for sampling risk.

3 unadjusted balance in the inventory account.

4 tolerable misstatement for the inventory account.

5 planning materiality established in the planning stage of the audit.