nardosem9
nardosem9
04.03.2020 • 
Business

Solo, CPA, performed a nonstatistical sampling plan to examine the inventory balances of Hope Inc., and estimated the account balance by projecting the misstatement based on the number of items examined. In selecting her sample of 70 items, she used an expected misstatement of $40,000 and a tolerable misstatement of $65,000. The account balance consisted of 1,050 items totaling $1,200,000. The sample recorded balance was $80,000, and the audited value was $76,000. What conclusion did Solo draw regarding the account balance?

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