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An auditor took an initial sample of 50 transactions and finds two exceptions and computed CUER using statistical sampling. The auditor took an additional sample of 25 items and found one exception in the additional sample. CUER for the combined sample will be: O Higher O Lower No change Cannot determine Question 43 1 pts Assuming a large population and holding sample size constant, if the auditor increases ARO what will be the effect on CUER? Increase Decrease No change O Cannot determine 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 Place the entire projected error on the summary of possible adjustments. Accept population as fairly stated and take no further action. 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. O 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 Request the client fix the population. Accept population as fairly stated and take no further action 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, O Propose an adjustment for actual errors and perform additional testing. Perform additional testing in a specific area