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An auditor samples 1% of the population and finds a net overstatement of $3,896 within the sample. The auditor can tolerate $400,000 of net overstatement

An auditor samples 1% of the population and finds a net overstatement of $3,896 within the sample. The auditor can tolerate $400,000 of net overstatement in the account. What factors should the auditor consider when evaluating this account? What factors could cause the auditor to reach the incorrect conclusion about this account? Explain. (7 points)

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