Question
The auditor performed tests of details on accounts receivable with the following results: Book value of population $3,000,000 Tolerable misstatement $60,000 Audit misstatement posting threshold
The auditor performed tests of details on accounts receivable with the following results:
Book value of population $3,000,000
Tolerable misstatement $60,000
Audit misstatement posting threshold $10,000
Actual amount of misstatements $20,000
Projected misstatement $60,000
The auditor found one pricing error due to a renegotiated government contract in a sample of 100
The auditor would most likely:
Group of answer choices
Accept the population as fairly stated and take no further action.
Place the entire projected error on the summary of possible adjustments.
Propose an adjustment for the actual errors, and place unadjusted errors on the summary of possible adjustments.
Propose an adjustment for the actual errors, and perform additional testing.
Request that the client fix the population.
Treat the error as an isolated anomaly and do not project to the population.
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