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66 An auditor obtains the audit cient's accounts receivables balances for the year. The book value of the accounts receivable is $10,000,000 The auditor sets
66 An auditor obtains the audit cient's accounts receivables balances for the year. The book value of the accounts receivable is $10,000,000 The auditor sets the tolerable misstatement at $500,000 (5% of the book value of the population) The auditor stratifies the population and randomly selects accounts from each level for testing. After testing, the total estimated overstatement of accounts receivable is more than $500,000 Which action should be taken next by the auditor? Ask the client to retrieve the assessed value Conclude that fraud is occurring Apply alternate audit procedures Decrease the sample size
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