In a Monetary-Unit Sample with a Sampling Interval of $5,000,an

Multiple Choice

In a monetary-unit sample with a sampling interval of $5,000,an auditor discovers that a selected account receivable with a recorded amount of $10,000 has an audit amount of $8,000.If this were the only error discovered by the auditor,the projected misstatement for this sample would be

A) $5,000.
B) $4,000.
C) $2,000.
D) $1,000.
Since the item sampled is greater than the sampling interval, the factual error of $2,000 is equal to the projected error.