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1. If the projected misstatement in a nonstatistical sampling is $8,000, while the tolerable misstatement is $9,000, what would an auditor likely conclude? A. Since the projected misstatement is less than the tolerable misstatement, the account is not misstated. B. Since the projected misstatement is less than the tolerable misstatement, the account is misstated. C. The risk is high that the account is materially misstated. D. The analysis has been improperly performed since the projected misstatement is unequal to the tolerable misstatement. A. Statistical samples are more representative of the population. 2. Which of the following is generally not true about statistical sampling as compared to nonstatistical sampling? A. Statistical samples are more representative of the population. B. Statistical sample plans involve additional costs of evaluation. C. Statistical sampling allows a more objective evaluation of sample results. D. Statistical sampling may assist the auditors
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