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Question - The balance in A/P at year end was reported by the client as $1,500,000. The auditor decided to send confirmations to vendors as follows:
1. Confirmations were sent to all vendors with balances greater than $50,000 for a total of $200,000. No misstatements were found.
2. Of the remaining $1,300,000 in A/P, the auditor selected 20 vendor balances (totaling $400,000) to confirm. Misstatements of $3,000 were found in the sampled population.
Calculate the projected misstatement in A/P. (Use commas, no decimals, no $ sign.)
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