The Auditor Selects All Items Above $10 000, Which Comprise

Multiple Choice

The auditor selects all items above $10 000, which comprise 10 per cent of the items in the population and tests 100 per cent of these items. The auditor does not test items below $10 000. The misstatements found in audit testing total $20 000. Which of the following statements is false?

A) The auditor cannot extrapolate the results of the audit testing to the population.
B) The auditor has not used an audit sampling approach.
C) The audit testing approach undertaken is not in breach of auditing standards.
D) The auditor's best estimate of error in the population is $200 000.