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17-27 (Objectives 17-2 ,173) Assume you performed sampling for an accounts receivable population with a recorded population amount of $2,000,000. Tolerable misstatement is set at $100,000 for the test, and there are no individually significant accounts greater than $100,000. Several different sampling results for this population are presented below; the upper bound is the projected misstatement plus an allowance for sampling risk. The results presented are for an MUS sample, but the decision as to how to resolve the projected misstatement, including consideration of sampling risk, also applies to nonstatistical sampling. The differences in sample size reflect differences in confidence levels and expected misstatement used in designing the sample. You are to make a recommendation as to the appropriate action to take given the sample results. Assume that the client is willing to record an audit adjustment for actual misstatements detected in your testing, but is unwilling to record an adjustment for projected errors. Issuing a qualified or adverse opinion is not included as an option. Because the audited financial statements are required under the terms of a loan agreement, the client will agree to additional testing or will correct the population if needed to receive an unmodified opinion. Required For each of the sampling results 1 through 6 , recommend the appropriate response(s) from the options listed below. Explain the reason for your decision. a. Accept the population as fairly stated. b. Request the client to record an adjustment for the actual misstatements. c. Expand the sample size. d. Request the client to fix the population, which will then be reaudited. e. Treat the misstatement as an anomaly that is an isolated occurrence that should not be projected to the population. In-class