Question: What is tolerable misstatement How do auditors use it when
What is tolerable misstatement? How do auditors use it when deciding whether account balances are fairly recorded?
Answer to relevant QuestionsWhat are the objectives of attributes and variables sampling?What is the upper limit rate of deviation? What information does the upper limit rate of deviation provide to the audit team?Which of the following major stages of the audit is most closely related to attributes sampling? a. Determining preliminary levels of materiality. b. Performing tests of controls. c. Performing substantive procedures. d. ...Assume that Dylan Lee found two deviations in a sample of 90 transactions. Using AICPA sample evaluation tables, Lee determined that the upper limit rate of deviation at a 5 percent risk of overreliance is a. 2.0%. b. 2.2%. ...If the sample evidence does not support the planned level of control risk, the audit team could a. Increase the assessed level of control risk. b. Perform additional substantive procedures, reducing the necessary level of ...
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