In a test of the existence assertion the projected misstatement in a statistical sample is $165,000, the upper confidence limit is $300,000 and the maximum tolerable misstatement is $265,000, what would an auditor decide?

a) There are misstatements, but the auditor cannot conclude that total misstatement is less than the maximum tolerable amount.

b) The account is overstated by more than the maximum tolerable amount.

c) There are misstatements, but total misstatement is less than the maximum tolerable amount

d) There is no misstatement in the account.