Alice Rathermel audited LoHo Company’s inventory using sampling. Sheexamined 120 items from an inventory compilation list and discovered net overstatement of $480.The audited items had a book (recorded) value of $48,000. There were 1,200 inventory items listed, and the total recorded inventory amount was $490,000. What is the projected misstatement using mean-per-unit estimation?a. $480.b. $576,000.c. $10,000.d. $480,000.

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Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.