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If projected misstatement in non statistical sampling is $95,000 and tolerable misstatement is $100,000, what would...

If projected misstatement in non statistical sampling is $95,000 and tolerable misstatement is $100,000, what would an auditor likely conclude?

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The auditor would conclude that the risk is high that the account is materially misstated
Allowance for sampling risk=Projected misstatement-Tolerable misstatement=95000-100000=-$ 5000
If allowance for sampling risk is small or negative the auditor would conclude that a material misstatement does exist
If allowance for sampling risk is large and positive, the auditor would conclude that a material misstatement does not exist
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