VSolo,CPA,performed a Nonstatistical Sampling Plan to Examine the Inventory Balances

Multiple Choice

V.Solo,CPA,performed a nonstatistical sampling plan to examine the inventory balances of Hope,Inc.In selecting the sample of 70 items,Solo 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's recorded value was $80,000,and the audited value was $76,000.What conclusion did Solo draw regarding the account balance?

A) To accept it because the estimated misstatement is less than the tolerable misstatement.
B) To reject it because the estimated misstatement is more than the expected misstatement.
C) To accept because the estimated misstatement is less than the expected misstatement.
D) To reject because the estimated misstatement is more than the tolerable misstatement.