3 Chapters &,9, 10 and 11 TIPLE CHOICE. Choose the one alternative that best completes the statement or answers t 25) 25) In monetary-unit sampling, population size is A) unrelated to sample size B) included in the denominator of the formula to determine sample size. C) the dollar balance in an account D) the number of items in an account. 26) An accounts receivable account balance is $500,000 and the auditor determines a 26) sample size of 30 would provide adequate assurance. The auditor plans to use a monetary-unit sampling plan with systematic sample selection. The auditor's sampling interval should be A) 16,666 B) 6. D) 20. C) 15,000 27) For monetary-unit sampling, a sampling interval of 400 means that 27) A) every 40oth item in the account will be selected in the sample. B) every 400th dollar in the account will be included in the sample. C) the average size of items in the account is 400. D) the average misstatement in sample items is $400. 28) In a monetary-unit sample with a sampling interval of $5,000, an auditor discovers that 28) a selected account receivable with a recorded amount of $10,000 has an audit amount of $8,000. If this were the only error discovered by the auditor, the projected misstatement for this sample would be A)$1,000. B) $5,000. C) $2,000. D) $4,000. 29) In a monetary-unit sampling plan, the upper misstatement limit is S11,200 and the risk 29) of incorrect acceptance is 5%. This means that A) there is a 95% chance that the actual misstatement in the account is 5%. B) there is a 95% chance that the actual misstatement in the account is$11,200 or C) tolerable misstatement is $11,200. D) there is a 95% chance that the actual misstatement in the account is S 11.200 or less. 0) If the upper limit on misstatements exceeds tolerable misstatement, the auditor30) A) conduct other substantive procedures B) will not accept the account balance as accurate. C) adjust the account balance. D) increase sample size