In the audit of Concord Company for the year ended September 30, the auditor set a tolerable

misstatement of $50,000 at an ARIA of 10%. A MUS sample of 100 was selected from an accounts receivable population that had a recorded balance of $1,975,000. The following table shows the differences uncovered in the confirmation process:

RecordedAmount Audit Amount

1 2728 2498

2 3890 1190

3 815 785

4 3215 3190

5 21000 20000

(a) Calculate the upper misstatement bound on the basis of the client misstatements in the sample with detailed explanation.

(b) Determine whether the population is acceptable as stated. If not, explain what options are

available to the auditor at this point.