Indicate the action the auditor should take for the sampling results described below: . Additional facts (these are the same for each problem of this type unless altered by information given for each case): Book value of the population is $3,000,000 Sampling tolerable misstatement is $50,000. Base your decisions on tolerable misstatement, rather than overall planning materiality. The audit misstatement posting threshold is $10,000 Adjustments are not proposed unless necessary. It is feasible to expand the sample, if necessary. The projected error is an estimate of the total error in the population, including the actual errors identified. Ignore sampling risk. $3,000 actual misstatements (One pricing error and one quantity error in a sample of 50 items). Client is willing to adjust for actual errors. $15,000 projected misstatement . . Accept population as fairly stated and take no further action Place the entire projected error on the summary of possible adjustments, O Prepare an adjustment for the actual errors, and place unadjusted errors on the summary of possible adjustments. Propose an adjustment for actual errors and perform additional testing Perform additional testing in a specific area. Request the client fix the population. Indicate the action the auditor should take for the sampling results described below: Additional facts (these are the same for each problem of this type unless altered by information given for each case): Book value of the population is $3,000,000 Sampling tolerable misstatement is $50,000. Base your decisions on tolerable misstatement, rather than overall planning materiality. The audit misstatement posting threshold is $10,000 Adjustments are not proposed unless necessary. It is feasible to expand the sample, if necessary. . The projected error is an estimate of the total error in the population, including the actual errors identified. Ignore sampling risk. $30,000 actual misstatements (Two pricing errors in a sample of 50 items). Client is willing to adjust for actual errors. $100,000 projected misstatement O Place the entire projected error on the summary of possible adjustments, Prepare an adjustment for the actual errors, and place unadjusted errors on the summary of possible adjustments Perform additional testing in a specific area. Propose an adjustment for actual misstatements and perform additional testing. Request the client fix the population Accept the population as fairly stated and take no further action . Indicate the action the auditor should take for the sampling results described below: Additional facts (these are the same for each problem of this type unless altered by information given for each case): Book value of the population is $3,000,000 Sampling tolerable misstatement is $50,000. Base your decisions on tolerable misstatement, rather than overall planning materiality. The audit misstatement posting threshold is $10,000 Adjustments are not proposed unless necessary. It is feasible to expand the sample, if necessary. The projected error is an estimate of the total error in the population, including the actual errors identified. Ignore sampling risk. $25,000 actual misstatements (Pricing change on a renegotiated contract), Client is willing to adjust for actual errors. $60,000 projected misstatement Accept population as fairly stated and take no further action. Place the entire projected error on the summary of possible adjustments. Prepare an adjustment for the actual errors, and place unadjusted errors on the summary of possible adjustments Propose an adjustment for actual errors and perform additional testing. Perform additional testing in a specific area. Request the client fix the population. Indicate the action the auditor should take for the sampling results described below: Additional facts (these are the same for each problem of this type unless altered by information given for each case): Book value of the population is $3,000,000 Sampling tolerable misstatement is $50,000. Base your decisions on tolerable misstatement, rather than overall planning materiality. The audit misstatement posting threshold is $10,000 Adjustments are not proposed unless necessary. It is feasible to expand the sample, if necessary. The projected error is an estimate of the total error in the population, including the actual errors identified. Ignore sampling risk. $25,000 actual misstatements (15 pricing errors in a sample of 100 items). Client is willing to adjust for actual errors. $240,000 projected misstatement . Accept population as fairly stated and take no further action. O Place the entire projected error on the summary of possible adjustments. O Prepare an adjustment for the actual errors, and place unadjusted errors on the summary of possible adjustments O Propose an adjustment for actual errors and perform additional testing. Perform additional testing in a specific area. Request the client fix the population
