D is corrent because precision (the allowance for sampling risk) is used to construct an interval around the sample results in which the true population characteristic is expected to lie. Accordingly, possible error in either direction from the sample results is considered.
A is incorrect because the projected error (projected misstatement) is the difference between the client’s book value and the auditor’s estimate of the audited value.
B is incorrect because the standard deviation is a statistical concept relied upon for evaluating results in classical variables sampling.
C is incorrect because reliability in variables sampling is the risk of incorrect rejection.
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