An Auditor Believes That a Client's Warranty Liability Is Between

Multiple Choice

An auditor believes that a client's warranty liability is between $100,000 and $130,000,with each amount in that interval equally likely.The financial statements show a liability of $90,000.

A) $10,000 judgmental misstatement.
B) $10,000 projected misstatement.
C) $20,000 judgmental misstatement.
D) $20,000 projected misstatement.